Tuesday, June 25, 2013

Overload of foreign nationals on boards may ground Jet-Etihad deal

New Delhi: The civil aviation ministry has objected to the large presence of foreign nationals or nominees of Etihad on the key boards and committees of Jet Airways, adding another bit of complication to the largest foreign investment by an airline in India.
The ministry headed by Ajit Singh, which had lobbied hard for foreign direct investment for Indian carriers, has objected to the structure of the revised shareholders agreement submitted by Jet and Etihad recently and fears that Etihad will have control of operations, which is not in keeping with the country's civil aviation rules and regulations.
The objections could end up complicating matters for Jet-Etihad as the ministry has been one of the few vocal supporters of the $379-million (Rs 2,190-crore) deal announced in April this year.
26/06/13 Anindya Upadhyay/Economic Times