Etihad Airways’ proposal to acquire a 24 per cent stake in Jet Airways appears to be taking too long. Talks of the tie-up started late last year, soon after the Government allowed foreign investments in domestic airlines, but even now there are no clear indications on when the deal will get all the clearances.
Many in the aviation sector believe that the tie-up will eventually get the Government’s nod. The deal is believed to be a showpiece of the Government’s liberalisation process and is an attempt to show that despite various domestic problems, such as the plunging rupee, rising inflation, and perceptions of a non-performing Government, UPA-II is alive and ready to do business with the rest of the world. And what better way to show this than clearing an airline’s deal, which, in just over two decades, has grown from a home-bred airline to one among the top-ranked global airline brands?
Even otherwise, Government officials point out that there is little that they can or should do to prevent the deal from going through.
30/06/13 Ashwini Phadnis/Business Line
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Many in the aviation sector believe that the tie-up will eventually get the Government’s nod. The deal is believed to be a showpiece of the Government’s liberalisation process and is an attempt to show that despite various domestic problems, such as the plunging rupee, rising inflation, and perceptions of a non-performing Government, UPA-II is alive and ready to do business with the rest of the world. And what better way to show this than clearing an airline’s deal, which, in just over two decades, has grown from a home-bred airline to one among the top-ranked global airline brands?
Even otherwise, Government officials point out that there is little that they can or should do to prevent the deal from going through.
30/06/13 Ashwini Phadnis/Business Line
