Jet-Etihad association will strengthen India, UAE economies: Hogan
The Jet-Etihad association will strengthen both carriers as well as the economies of India and the UAE, Etihad president James Hogan said.
Naresh Goyal-led Airways on Wednesday confirmed that it had transferred equity shares worth Rs 2,060 crore or 24 per cent stake in the carrier to Etihad, adding that the strategic alliance had taken effect with immediate effect. In addition, the Indian carrier announced two board positions for nominees of Etihad.
The just concluded deal marks the first instance of investment by a foreign airline into an Indian carrier. The deal was first announced nearly seven months ago.
Commenting on the finalized deal, Hogan said, "India is one of the largest and fastest-growing markets in the world and a key part of the Etihad growth strategy. Through this association, Etihad and Jet will both be strengthened, as will the economies of India and the UAE."
He added that linking the networks of the two carriers would allow them introduce new flights and new routes, which would make travel to, from and within India much easier.
Jet Airways has plans to use the proceeds from the stake sale to improve its financial condition. As on September 30, Jet Airways had a long term debt of Rs 9,134 crore. For the July-September quarter of current financial year, the carrier reported a record loss of Rs 998.5 crore.