New Delhi: The first-of-its-kind deal between NareshGoyal-owned Jet AirwaysBSE 10.69 % and Abu Dhabi's national carrier Etihad has rattled the Indian aviation industry because it is accompanied by a huge revision of air capacity between India and Abu Dhabi, which could lead to cannibalisation of domestic carriers' and private airports' passenger traffic.
In the backdrop of the financial deal between Jet Airways and Etihad, the two regions decided to revise up air capacity by 36,670 seats per week from the existing 13,300 seats per week sparking concerns among the local airlines and private airports.
National carrier Air India along with other private airlines have been protesting the revision of traffic rights between India and Abu Dhabi, saying that this would serve to create another Emirates, Dubai's national carrier, which through a similar windfall increase in bilateral rights has now cornered the largest share of Indian outbound traffic.
25/04/13 Economic Times
