The $379 million deal between Jet Airways and Etihad Airways will have a significant bearing on India's financially strapped aviation industry. But more than that it's the Indian passenger who is likely to benefit the most.
The $379 million (about Rs 2,000 crore) deal between Naresh Goyal-promoted Jet Airways and Abu Dhabi-based Etihad Airways will have a significant bearing on India's financially strapped aviation industry.
HT Image
But more than that it's the Indian passenger who is likely to benefit the most. Here's how:
· Expect fares to come down as the airline will likely offer attractive introductory schemes to lure passengers to wean them away from competition
· Fare rationalization is expected the most in Gulf, North America and European routes
· Jet plans to connect 23 Indian cities with hundreds of international destinations within Etihad's global network
· There will also be more seats on offer, which will help keep fares down because of increased competition
· This will save passengers from smaller cities the hassle of travelling to metro or a bigger city before flying out overseas
· For existing Jet frequent flyers there could be a bonaza in waiting as they may be co-opted in the Etihad's frequent flyer programme, although no details have yet been spelt out yet
· Over time, Abu Dhabi could match Dubai as a busy hub of West-bound traffic, offering passengers the option of hopping across two glitzy cities in the Gulf