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Case Study Of Etihad

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INTRODUCTION:-
November 20, 2013 was a historic day for the Indian aviation industry after Jet Airways (India) Limited (“Jet” or “Target”) and Etihad Airways PJSC (“Etihad”) concluded about much talked issue of about US$ 379 million investment by Etihad to acquire a 24% stake in Jet (“Deal”).
In addition to the equity investment, Etihad also agreed to infuse US$ 150 million into JetPrivilege, the frequent flyer program of Jet, to be managed by its subsidiary, Jet Privilege Private Limited and also provide or arrange for a loan of US$ 150 million to Jet. Earlier in January 2013 of the year, Etihad had purchased 3 slots owned by Jet at the Heathrow airport in London for US$ 70 million.
The saga of the Jet-Etihad deal had been in so much …show more content…

In 2013, Etihad, a company incorporated in the United Arab Emirates (UAE), a national airline of UAE, proposed to acquire 24% in Jet, a listed company incorporated in India. Etihad is wholly owned by the Government of Abu Dhabi and is primarily engaged in the business of international air passenger transportation services, commercial holiday services and cargo services. It is also stated to hold 29.21 percent equity in Air Berlin; 40 percent equity in Air Seychelles; 10 percent equity in Virgin Australia and 2.9 percent equity in Aer Lingus. Jet on the similar lines, is primarily engaged in the business of providing low cost and full service scheduled air passenger transport services to/from India along with cargo, maintenance, repair & overhaul services and ground handling services. The proposal got approved by the Security Exchange Board of India (SEBI), the Foreign Investment Promotion Board (FIPB) and Cabinet Committee of Economic Affairs (CCEA). Thereafter the Investment Agreement, Shareholders Agreement and a Commercial Cooperation Agreement between Jet and Etihad were submitted to CCI for its approval. This has been considered as a landmark case in the aviation sector, as CCI examined the details of the impact caused by the deal on air passenger services and consequently on competition in

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