The Jet-Etihad deal, which is under the scanner by various regulatory bodies, has hit turbulence once again. Fresh questions are being raised over Jet Airways’ commercial pact with Etihad.
Jet’s plan to relocate operations and core functions to Abu Dhabi has raised eyebrows as the proposed plan is not consistent with Indian norms, sources said. The co-operative board of the company will have control with 19 foreign nationals nominated by Etihad, sources added, and the government fears losing operation control of the domestic airline Jet due.
Meanwhile, Civil Aviation Minister Ajit Singh is all set to send a note to the Cabinet on the India-Abu Dhabi bilateral deal. The Prime Minister’s Office (PMO) had written a note to the Civil Aviation Minister in June to get the seat sharing deal approved by the Cabinet.
Several complaints by MPs like Jaswant Singh, Dinesh Trivedi and Subramanian Swamy followed saying the seat sharing pact is loaded in Etihad’s favour. Sources are now saying that Jet Airways and Etihad are reworking the agreement to address concerns raised by the Civil Aviation Ministry, FIPB and SEBI.
The deal between Jet Airways and Abu Dhabi-based Etihad had hit a roadblock with the PMO asking Civil Aviation Ministry to allay concerns over the planned 24 per cent Jet’s stake sale to Etihad.
