News

Etihad Confirms 24% Stake in Jet Airways

Etihad Confirms 24% Stake in Jet Airways

On 22nd January 2013, Irish Travel Trade News reported that: “Etihad Airways could pay up to U$330 million for a 24% stake in Jet Airways, India’s second-biggest carrier.” Etihad has now confirmed that it will make a $379 million investment, buying 27.3 million new shares of Jet Airways at 754.74 rupees per share, a 31.7% premium to Jet’s closing share price on Tuesday, and acquire 24% of Jet’s expanded share capital.

Etihad will also invest an additional $150 million in Jet’s frequent flyer programme and spend $70 million to buy Jet’s three pairs of London Heathrow slots through the sale and leaseback agreement announced in February.

Etihad :Jet Airways

Captain Hameed Ali, Acting Chief Executive, Jet Airways; James Hogan, President, Etihad Airways; Naresh Goyal, Chairman, Jet Airways; and James Rigney, Chief Financial Officer, Etihad, at the announcement of their strategic equity alliance

Etihad said the move would allow it to take a bigger foothold in the growing Indian market. The latest $379 million investment is the first by an overseas operator in an Indian airline since ownership rules were relaxed. Following the deal, Jet is likely to benefit from strategic expertise, cheap financing and possible fuel import benefits in addition to the capital injection.

“The deal is expected to bring immediate revenue growth and cost synergy opportunities, with our initial estimates of a contribution of several hundred million dollars for both airlines over the next five years,” said James Hogan, Etihad President and Chief Executive.

Click to add a comment

Leave a Reply

Your email address will not be published. Required fields are marked *

News

NEIL STEEDMAN has been a trade journalist, copywriter, editor and proofreader for 52 years, and News & Features Editor for ‘Irish Travel Trade News’ for the past 42 years.

More in News

Qatar Airways Increases Shareholding in IAG to 25.1%

Neil SteedmanFebruary 20, 2020

TCI Reveals Top 10 Long-Haul and Short-Haul Booking Lists

Neil SteedmanFebruary 20, 2020

ITTN’s Top Travel Deals – 20th February 2020

Neil SteedmanFebruary 20, 2020

Coronavirus Update: Passengers Leave the Diamond Princess, ITB China Cancelled

Neil SteedmanFebruary 20, 2020

Summer Family Fun Offers on Haven Family Holidays with Irish Ferries

Neil SteedmanFebruary 20, 2020

Royal Caribbean International Signs Agreement with Antigua and Barbuda

Michael FloodFebruary 20, 2020

Galgorm Spa & Golf Resort to Host Spa Life Ireland

Michael FloodFebruary 20, 2020

FAMILY SALE NOW ON

Neil SteedmanFebruary 19, 2020

MAKING THE MONTH OF LOVE EVEN LOVELIER

Neil SteedmanFebruary 19, 2020

Copyright © 2019 Belgrave Group Limited, C4 Nutgrove Office Park, Nutgrove Avenue, Rathfarnham, Dublin 14, Ireland