New Delhi: Jet Airways and Etihad might have to re-work the ownership structure proposed in the Rs 2,058-crore deal with key ministries including civil aviation and corporate affairs, raising concerns over ultimate control of the domestic carrier.
The issues were voiced at the Foreign Investment Promotion Board (FIPB) meeting on Friday, sources said.
The decision on the deal, struck by Jet Airways to sell 24 per cent of its stake to Abu Dhabi’s Etihad Airways, was deferred by the FIPB.
The deal is the largest foreign investment proposal in the sector after the government allowed foreign carriers to pick up stake in Indian airlines last September.
Concerns have been primarily raised on the proposed ownership and control structure of the domestic airlines.
Sources said capital market regulator Securities and Exchange Board of India (Sebi), fair trade regulator Competition Commission of India and the department of industrial policy and promotion also had reservations about the transaction.
17/06/13 PTI/Business Standard
To Read the News in full at Source, Click the Headline
The issues were voiced at the Foreign Investment Promotion Board (FIPB) meeting on Friday, sources said.
The decision on the deal, struck by Jet Airways to sell 24 per cent of its stake to Abu Dhabi’s Etihad Airways, was deferred by the FIPB.
The deal is the largest foreign investment proposal in the sector after the government allowed foreign carriers to pick up stake in Indian airlines last September.
Concerns have been primarily raised on the proposed ownership and control structure of the domestic airlines.
Sources said capital market regulator Securities and Exchange Board of India (Sebi), fair trade regulator Competition Commission of India and the department of industrial policy and promotion also had reservations about the transaction.
17/06/13 PTI/Business Standard
