Terming the Jet-Etihad deal as a positive for the struggling Indian civil aviation sector, Civil Aviation Minister Ajit Singh has said the alliance will provide passengers multiple options and open possibilities of India becoming a travel hub.
"This alliance between Jet-Etihad
is positive for the industry. It will ultimately benefit the passengers and
grow the sector further," Singh told IANS on Friday. "This will open possibilities of India becoming a hub for international travel. With projections showing a very rapid growing passenger numbers and favourable geographic location, India requires more alliances for servicing passengers needs."
Singh was commenting upon the latest decision of the
Cabinet Committee on Economic Affairs (CCEA) to give its nod to the deal between Jet Airways and the Etihad Airways, paving the way for the first foreign capital by an international passenger carrier into a domestic one.
"The Cabinet Committee on Economic Affairs today (Thursday) gave its approval to the proposal of Etihad Airways for subscribing 2,72,63,372 equity shares of Jet Airways," the CCEA said in a statement. "The
Foreign Investment Promotion Board (FIPB) has recommended the proposal. The approval would result in foreign investment amounting to Rs 2,057.66 crore in the country."
The stock market regulator Securities and Exchange Board of India has already approved the deal, following an amended share holding agreement between the two airlines.
Jet Airways had announced a 24 per cent stake sale to Etihad Airways on April 24, nearly eight months after the government permitted international airlines to invest into domestic passenger carriers.
The funds raised from the deal will enable Jet Airways company to service its debts and provide passengers better connectivity.
Civil Aviation Minister Ajit Singh. PHOTO: Reuters 
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