Regional Round-Up
Etihad-Jet deal a threat to Air India
March 1st 2013
There is growing concern that the proposed partnership between Abu Dhabi-based Etihad Airways and India’s Jet Airways could pose a significant threat to the survival of troubled government-owned Air India. Read More »
Also, expected liberalization of several bilateral air deals, including India’s agreement on air rights with the United Arab Emirates (UAE), will bring heightened competition on vital international air routes where Air India suffers 80%-90% of its losses, according to a report by aviation consultants CAPA.
The report said the Jet-Etihad deal will have a “critical impact” on Air India. It added the liberalization of the UAE bilateral will also benefit other Gulf operators, Emirates Airline, flyDubai and Air Arabia. Worse still for the India’s national carrier, Qatar Airways, Turkish Airlines and Singapore Airlines are “waiting in the wings seeking an expansion of bilaterals”.
Complex talks and due diligence by Etihad into Jet – it is expected to buy up to 24% of the carrier – were continuing late last month with indications that reaching an agreement could take some time.
Sources close to the discussions told Orient Aviation that issues included the composition of the Jet Airways board once Etihad makes its investment (although the board will have to consist of majority Indian membership) and the level of involvement the Gulf carrier will have in key management positions.
