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Etihad closes transaction for 24-percent stake in Jet Airways

By control on November 20, 2013

Etihad Airways and Jet Airways announced Wednesday that the airlines closed the transaction for the subscription of a 24-percent equity stake by Etihad in Jet Airways.

All requisite Indian regulatory approvals were obtained by Nov. 12.

Jet Airways has issued and allotted 27,263,372 equity shares of a face value of 10 rupees each at a price of 754.7361607 rupees per equity share on a preferential basis to Etihad.

James Hogan and James Rigney, as nominee directors of Etihad Airways, have been appointed as additional directors on the board of Jet Airways.

“The infusion of foreign direct investment in the aviation sector will result in economies of scale, grow traffic at our airports and create job opportunities,” Naresh Goyal, chairman of Jet Airways, said. “I am confident that this investment will greatly benefit all our stakeholders whilst significantly benefitting our customers who will now have access to a more expanded global network.”

Goyal also stressed that together with Etihad, Jet Airways would enhance connectivity for tourists, business travelers, Indian families and the wider traveling public.

“India is one of the largest and fastest-growing markets in the world and a key part of the Etihad Airways growth strategy,” James Hogan, president and CEO of Etihad Airways, said. “Through this association, Etihad Airways and Jet Airways will both be strengthened, as will the economies of India and the UAE. By linking our two networks and adding new flights, new routes and more code-share options, travel to, from and within India will become much easier.”

Goyal and Hogan confirmed that the collaboration between the airlines would commence immediately. Specific details will be released later, Etihad said.