The aviation sector will undergo drastic change after Etihad invests in the country, said Saroj K Datta, ex director at Jet Airways. Yesterday, the airline confirmed that it is in talks with Etihad for a possible stake sale and is in final stages of negotiations.
Datta told CNBC-TV18 that additional funds from Etihad will help Jet Air reduce high cost loans. "Jet Air has proved its credibility for investment from Etihad," he added.
He however said that right now it would be difficult to assess synergies between both carriers and also stressed that it is crucial for them to prevent passenger cannabilisation.
At the macro level, the industry will see more financial efficiency with the entry of foreign players, is what he expects.
04/01/13 CNBC-TV18/Moneycontrol.com
