Etihad Airways and Jet Airways have closed the transaction giving Etihad a 24% equity stake in Jet Airways. All required Indian regulatory approvals were obtained by Nov. 12.
Today (Nov. 20), Jet Airways issued and allotted 27,263,372 equity shares of a face value of Rs. 10 each at a price of Rs. 754.7361607 per equity share on a preferential basis to Etihad Airways. Consequent to the above allotment, the paid up share capital of Jet Airways stands increased to 11,35,97,383 equity shares of Rs. 10 each. Additionally, Etihad’s James Hogan (president and CEO) and James Rigney have been appointed as directors on the board of directors of Jet Airways.
Naresh Goyal, chairman of Jet Airways, commented, “The infusion of foreign direct investment in the aviation sector will result in economies of scale, grow traffic at our airports, and create job opportunities. I am confident that this investment will greatly benefit all our stakeholders whilst significantly benefitting our customers who will now have access to a more expanded global network.” He also stressed that together with Etihad, Jet Airways will enhance connectivity for tourists, business travellers, Indian families and the wider travelling public.
According to Hogan, “India is one of the largest and fastest-growing markets in the world and a key part of the Etihad Airways growth strategy. Through this association, Etihad Airways and Jet Airways will both be strengthened, as will the economies of India and the UAE. By linking our two networks and adding new flights, new routes and more code-share options, travel to, from and within India will become much easier.” (http://www.etihad.com)