Monday, February 4, 2013

NEWS | Etihad Airways may get 50 per cent board representation in Jet Airways


Etihad Airways, which is widely expected to buy up to 24% stake in Jet Airways, could get equal board representation in the Indian company, people close to the development said. The Abu Dhabi-based airline is also expected to step up its stake in Jet in phases to 49%, though this could happen over a number of years, they added.

The two sides are believed to be very close to striking an agreement after months of intensive negotiations. On Thursday, Jet Airways promoter Naresh Goyal and Etihad Airways CEO James Hogan met Civil Aviation Minister Ajit Singh and discussed their plans for an alliance. Hogan also met Commerce Minister Anand Sharma.
Though the airline management refrained from commenting about the deal after meeting the minister, government officials told ET that the deal could be announced within a week.
"Etihad will get 50% representation on Jet's board immediately after buying up to 24% equity stake. The Jet Airways CEO will also be jointly decided, even though Jet is the majority shareholder," an official said.



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