Etihad investment to complete in a few months: Jet
New Delhi, July 16, 2013
Jet Airways (India) expects investments by Abu Dhabi's Etihad Airways in the airline to be completed within the next few months, Jet Chairman Naresh Goyal wrote in the company's annual report.
Etihad in April agreed to buy a 24 percent stake in Jet for $379 million. It is also making a $150 million equity investment in Jet's frequent flyer programme, and spent $70 million to buy Jet's three pairs of Heathrow slots through a sale and leaseback agreement announced in February.
"All these investments...are subject to obtaining the requisite regulatory and corporate approvals and final commercial agreements, which is expected to be completed within the next few months," Goyal wrote to shareholders.
Etihad's investment in Jet, which is the first by a foreign operator in an Indian airline since ownership rules were relaxed, is yet to win regulatory approval. India's Foreign Investment Promotion Board last month deferred a decision seeking more details on "effective control".
The deal also needs to be cleared by the capital markets regulator and will need final approval from a cabinet panel on investments.
Jet, which has called its annual shareholder meeting on Aug. 8, is seeking shareholders' approval to increase its borrowing limit to 250 billion rupees ($4.2 billion), according to the annual report posted on its website. – Reuters
More Travel, Tourism & Hospitality Stories
- Yas Island targets German tourist trade
- Sharq Doha unveils Al Dana Garden
- Beacon technology 'ideal' to aviation industry
- Emergency drill to take place at Amman airport
- JA Resorts to launch high-end resort In Maldives
- $5.3bn hotel projects coming up in Saudi
- Hilton appoints new GM for Alexandria hotel
- Air Arabia opens new sales office in Bahrain
- Lufthansa aims high with 'First Class' service
- Emirates launches new service to Boston
- Dubai Airports 'powers down' for green initiative
- City Seasons opens 5-star hotel in Abu Dhabi
- Etihad alert on fog
- Bahrain F1 visa procedures issued
- Oman Air appoints GSA for Turkey
- $40bn investment in Gulf airports likely
- Celebrity chef to open restaurant at InterContinental
- FRHI appoints wellness vice president
- Dubai, Abu Dhabi hotels top performance
- Malaysia Airlines jet presumed crashed, 239 onboard
- BA rolls out special Mother's Day fares
- Etihad says majority of stranded passengers sent home
- Malaysian jet search team spots 'column of smoke'
- Turkish Airlines revenue surges 27pc in 2013
- GCC airlines defend female cabin crew policies
- Malaysian flight 'presumed crashed' over China
- Qatar Airways likely to buy more A380s
- Malaysia Airlines jet goes missing over China
- Etihad in move to clear flights backlog
- Tourism industry emerges from downturn