Saturday, May 20, 2017

Jet Airways-investor Etihad Airways could merge with Emirates: Economist

Four years after India's full-service carrier Jet Airways brought Etihad Airways on board by offering 24 percent stake,  the Naresh Goyal-owned firm could see a new stakeholder: Emirates. Of course, this is currently in the realm of speculation.
Abu Dhabi's national carrier Etihad had picked up the stake in Jet Airways for $379 million in April 2013. However, its investments in Italian airline Alitalia and Germany's Air Berlin have become unproductive, raising the possibility of a merger with bigger rival Emirates, says the Economist.
Alitalia reporting bankruptcy two weeks ago and Air Berlin posting record losses of $739 million for 2016, coupled with falling crude oil prices, could push the Abu Dhabi-based carrier to two "radical" options: "closing down Etihad and even seeking a merger with Emirates," the magazine reported in its May 13, 2017 issue.
Etihad holds 49 percent stake in Alitalia and 30 percent in Air Berlin. But Emirates is "not keen" on buying Etihad, because two hubs would be daunting task.
19/05/17 SV Krishnamachari/IBTimes