News
Etihad Airways to lift holding in India’s Jet Airways to 49%; SriLankan changes course - again
February 26th 2016
Abu Dhabi’s Etihad Airways is said to be increasing its equity in Jet Airways from 24% to 49% - the maximum foreign investment limit in an Indian carrier – India’s Financial Express reported, citing Jet sources. Read More »
According to the report, the two sides have reached a tentative deal after agreeing on a valuation of the shareholding. Jet, which had total debts exceeding 11,920 crore rupees ($1.7 billion) to December 31, reportedly plans to raise $300-$400 million through the issuance of convertible bonds to which Etihad would subscribe. Mumbai-based Jet plans to use the funds to trim its debt and expand services.
In other India updates, flag carrier, Air India, this week announced it would launch a new thrice-weekly Delhi-Vienna B787 service from April 8, its eighth European destination. Air India will codeshare with Austrian Airlines on the route.
New Indian cargo operator, Quikjet Airlines, said it would launch four daily B737-400SF freighter services connecting Delhi, Chennai, Hyderabad and Bengaluru after securing an air operator’s certificate earlier this month.
Across the Palk Strait, flag carrier, SriLankan Airlines, a Oneworld member, is reversing earlier plans to terminate flights to Europe. In December, initial details about the carrier’s “Red-to-Black” restructuring called for the cancellation of loss-making services to Paris, Frankfurt and Rome, leaving London Heathrow as SriLankan’s sole destination in Europe.
However, under pressure from the local tourism industry, the state-controlled carrier has since decided to retain flights to France, Germany and the UK, only dropping Rome from May 1.
The carrier plans to focus more closely on high-growth markets in India and the Middle East. It is understood to be in negotiations with Airbus and lessors for the cancellation or swap of its four on-order A350s scheduled for delivery from 2019.
