The sale of 24 percent stake in Jet Airways to the Abu Dhabi-based Etihad Airways for around Rs.2,000 crore ($379 million) is a positive step for the aviation industry, experts watching the sector opined Wednesday.
Experts say that the deal will bring revenue growth and cost savings for both the companies.
"Both companies are going to gain from this strategic deal. Jet will get more financial options and a reliable international partner, while Etihad will get a foothold in India," said Rajiv Chib, associate director, PricewaterhouseCoopers.
According to Chib, the deal also demonstrated the interest international passenger carriers are taking in Indian domestic airlines, as they see future growth in the sector.
"This (deal) shows that foreign airlines are interested, as they see future growth in this sector. I do expect another major deal in this area happening by the year-end," Chib said.
However, the deal, which also entails a $600 million commitment from Etihad Airways, still needs to be ratified at an extraordinary meeting of Jet's shareholders.
25/04/13 SME Times
