Ethihad Airways to buy a stake in Jet Airways
July 31 , 2013
Etihad's Jet Airways stake deal that was scrutinized regarding concerns over who was to be in control of the airlines operations was approved by India panel.
Reports say Etihad agreed to reduce the number of seats it would hold on the airlines and that regulators have put more conditions on the deal regarding any changes in the shareholding pattern, which would require permission from the Indian government agencies.
The ruling government has been blamed for signing an agreement, according to which more flights would be permitted between India and UAE. This deal was supposed to be for the betterment of Jet Airways, which had been struggling off late but the agreement signed by the ruling government could hurt national carer Air India.
India's civil aviation minister, Ajit Singh said these issues are "politically motivated" and that the deal still needs to be approved by the capital markets regulator and the cabinet.