<p>In the first foreign direct investment (FDI) infusion in aviation sector, Jet Airways and Etihad on Wednesday closed the transaction on handing over 24 per cent stake in Jet Airways to the Abu Dhabi-based carrier.<br /><br /></p>.<p>After obtaining requisite regulatory approvals on November 12, a statement from the Indian carrier said, “Jet Airways has on November 20 issued and allotted 27,263,372 equity shares of a face value of Rs 10 each at a price of Rs. 754.73 per equity share on a preferential basis to Etihad Airways.”<br /><br />This would mean that the Etihad holds 24 per cent of the "post-issue paid up share capital" of Jet Airways "on a fully diluted basis". In accordance with Indian laws, Jet and its Chairman and promoter Naresh Goyal would hold 51 per cent stake.<br /><br />Following this, Etihad President and CEO James Hogan and Chief Financial Officer James Rigney have been appointed as additional directors of Jet Airways. The announcement came shortly after a Jet Airways board meeting.<br /><br />Though Jet has obtained all regulatory approvals, two cases are pending against the deal in Supreme Court. The deal, clinched in April this year, had given anxious moments for both the airlines as government bodies had expressed doubts about the holding patterns.<br /><br />After making changes in the agreement, the Foreign Investment Promotion Board (FIPB) and other agencies gave the requisite approvals. A section of politicians, including Subramanian Swamy, had raised objections to the deal.<br /><br />In a statement, Goyal and Hogan said that the collaboration between the airlines would commence immediately with a view to delivering network and service benefits to customers as soon as possible. "Specific details will be released progressively," they said.<br /><br />"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. I am confident that this investment will greatly benefit all our stakeholders whilst significantly benefiting our customers who will now have access to a more expanded global network," Goyal said.<br /><br />Hogan said India is one of the largest and fastest-growing markets in the world and a key part of the Etihad Airways’ growth strategy. "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," he said.<br /></p>
<p>In the first foreign direct investment (FDI) infusion in aviation sector, Jet Airways and Etihad on Wednesday closed the transaction on handing over 24 per cent stake in Jet Airways to the Abu Dhabi-based carrier.<br /><br /></p>.<p>After obtaining requisite regulatory approvals on November 12, a statement from the Indian carrier said, “Jet Airways has on November 20 issued and allotted 27,263,372 equity shares of a face value of Rs 10 each at a price of Rs. 754.73 per equity share on a preferential basis to Etihad Airways.”<br /><br />This would mean that the Etihad holds 24 per cent of the "post-issue paid up share capital" of Jet Airways "on a fully diluted basis". In accordance with Indian laws, Jet and its Chairman and promoter Naresh Goyal would hold 51 per cent stake.<br /><br />Following this, Etihad President and CEO James Hogan and Chief Financial Officer James Rigney have been appointed as additional directors of Jet Airways. The announcement came shortly after a Jet Airways board meeting.<br /><br />Though Jet has obtained all regulatory approvals, two cases are pending against the deal in Supreme Court. The deal, clinched in April this year, had given anxious moments for both the airlines as government bodies had expressed doubts about the holding patterns.<br /><br />After making changes in the agreement, the Foreign Investment Promotion Board (FIPB) and other agencies gave the requisite approvals. A section of politicians, including Subramanian Swamy, had raised objections to the deal.<br /><br />In a statement, Goyal and Hogan said that the collaboration between the airlines would commence immediately with a view to delivering network and service benefits to customers as soon as possible. "Specific details will be released progressively," they said.<br /><br />"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. I am confident that this investment will greatly benefit all our stakeholders whilst significantly benefiting our customers who will now have access to a more expanded global network," Goyal said.<br /><br />Hogan said India is one of the largest and fastest-growing markets in the world and a key part of the Etihad Airways’ growth strategy. "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," he said.<br /></p>
