New Delhi: Is Jet Airways really qualified to invite equity participation from Etihad, or any other foreign carrier, for that matter, given its current shareholding structure?
The BS story clarifies that though Goyal himself is a non-resident Indian (NRI), Jet is an Indian company and is, therefore, entitled to seek a strategic foreign partner. It is widely known that Goyal holds an overwhelming 80 percent equity in the airline through a company called Tail Winds, which is registered in the Isle of Man.
So, in effect, Jet is already 80 percent owned through a vehicle abroad. Till the new norms removing the cap on foreign companies buying into Indian carriers get notified, Jet continues to operate in violation of the current FDI guidelines which cap investment by foreign institutions (excluding airlines) at 49 percent.
19/09/12 First Post.com
To Read the News in full at Source, Click the Headline
The BS story clarifies that though Goyal himself is a non-resident Indian (NRI), Jet is an Indian company and is, therefore, entitled to seek a strategic foreign partner. It is widely known that Goyal holds an overwhelming 80 percent equity in the airline through a company called Tail Winds, which is registered in the Isle of Man.
So, in effect, Jet is already 80 percent owned through a vehicle abroad. Till the new norms removing the cap on foreign companies buying into Indian carriers get notified, Jet continues to operate in violation of the current FDI guidelines which cap investment by foreign institutions (excluding airlines) at 49 percent.
19/09/12 First Post.com
