Indiaâ€™s leading online travel portal, goibibo.com feels that this partnership can open ways for better commutation between the two owner countries.
Online PR News – 18-October-2013 – Gurgaon/Haryana – After cabinetâ€™s nod, Jet Airlines and Etihad Airways have officially announced the deal between the two. It is said that P.J.S.C will buy a stake in Jet Airways (India) Ltd.
Indiaâ€™s leading online travel portal, goibibo.com feels that this partnership can open ways for better commutation between the two owner countries. It is to be noted that Etihad is an Abu Dhabhi-based airline. The Foreign Investment Promotion Board (FIPB) had approved transaction on July 29, 2013.
Goibibo.com, the leading travel portal in India also believes that the new deal will help Jet Airways to pare debt. This Indian airline will also be allowed to expand its fleet and route network within next year. The point to be noted here is that the India-based airline is suffering losses of about Rs 2,806 crore due to factors like high fuel costs and competition level in international airlines and LCC category.
Etihad is already working on the Joint Venture (JV) with new CEO in charge and a large team. The business plan is in the pipeline and new orders and expected to arrive soon. Experts at Goibibo.com also says that with the inauguration of the deal, Jet Airways will move to a more professional and organized structure and may also be able to mark a beginning of better domestic business. It is to be noted the two airlines have to win approval from Competition Commission of India, an antitrust regulator set up in the country.
The deal is in the middle of a fragile situation as BJP leader Subramanian Sway has filed petition against the deal in the Supreme Court. It is also said that with the online mode of the deal, new board members and chair holders will be fit in to the picture. The new agreement will set 12 board members team, with four nominees of Jet Airways and two representatives off Etihad accompanied by six independent directors. New joint team is likely to manage global operations, revenue management and other existing issues. Another point to be kept in notice is that the operations of Jet Airways and Jet Airlines flight booking that do not include route connectivity through Abu Dhabhi will be handled independently. The same procedure will be implemented for Etihad Airways as well.