ETW STAFF – Mumbai
Etihad Airways of the United Arab Emirates and Jet Airways of India have announced that the UAE national carrier has agreed to subscribe for 27,263,372 new shares in Jet Airways at a price of INR 754.74 per share. The value of this equity investment is US$ 379 million and will result in Etihad Airways holding 24 per cent of the enlarged share capital of Jet Airways.
Etihad Airways’ wider overall commitment to Jet Airways includes the injection of US$ 220 million to create and strengthen a wide-ranging partnership between the two carriers.
As part of this Etihad Airways paid US$ 70 million to purchase Jet Airways’ three pairs of Heathrow slots through the sale and lease back agreement announced on 27 February 2013. Jet Airways continues to operate flights to London utilising these slots. An amount of US$ 150 million will be invested by Etihad Airways by way of a majority equity investment in Jet Airways’ frequent flyer programme ‘Jet Privilege’, subject to appropriate regulatory and corporate approvals and final commercial agreements which are expected to be completed within the next six months.
Under the strategic partnership, which will be subject to full regulatory and shareholder approval, the airlines will gradually expand existing operations and introduce new routes between India and Abu Dhabi, providing an ever wider choice to the travelling public. They will combine their network of 140 destinations, with Jet Airways establishing a Gulf gateway in Abu Dhabi and expanding its reach through Etihad Airways’ growing global network.