Jet Airways sells 24 per cent equity to Etihad Airways

Written by PTI | New Delhi | Updated: Nov 21 2013, 04:09am hrs
In the first FDI infusion by an airline in the Indian aviation sector, Jet Airways and Etihad today announced closure of a Rs 2,069 crore deal for the Abu Dhabi-based carrier to pick up 24 per cent equity in the Indian airline.

Following is the chronology of events that led to the conclusion of the Rs 2,069 crore Jet Etihad deal that was finalised today:

September 14, 2012: Cabinet Committee on Economic Affairs clear a proposal allowing up to 49 per cent foreign direct investment in domestic carriers by foreign airlines.

Sep 19, 2012: Jet Airways, which had earlier vehemently opposed the move, reportedly initiates discussions with Abu Dhabi-based Etihad Airways to offload minority stake.

Feb 27, 2013: Jet announces sale of three pairs of its premium slots at London Heathrow airport to Etihad for USD 70 million, signalling the stake sale deal with the gulf carrier.

Apr 9, 2013: Jet Airways writes a letter to the government urging it to initiate talks with Abu Dhabi on revising the bilateral air services agreement and seeks three fold increase in weekly seat capacity for the carrier.

Apr 22, 2013: Civil Aviation Ministry officials leave for Abu Dhabi to hold talks on enhancing bilateral traffic rights between the two countries.

Apr 24, 2013: Etihad agrees to buy 24 per cent equity in Jet Airways as part of a deal worth USD 600 million. It also proposes to buy a majority stake in Jet's frequent flyer programme for USD 150 million.

May 24, 2013: Jet's shareholders approve 24 per cent stake sale agreement at airline's extra-ordinary general body meet in Mumbai. However, the airline defers taking shareholders' approval for amendment in company's Article of Association following protest from minority shareholders and objections from market regulator SEBI.

Jul 29, 2013: Jet-Etihad deal receives Foreign Investment Promotion Board (FIPB) approval.

Sep 16, 2013: BJP leaser Subramanian Swamy drags government, Jet Airways and Etihad to Supreme Court, seeking to block the bilateral air services agreement between India and the United Arab Emirates, alleging lack of transparency and corruption. The matter is likely to come up for hearing in the apex court next month.

Oct 1, 2013: SEBI grants approval to the deal with some riders.

Oct 4, 2013: Cabinet gives go-ahead to Jet promoter Naresh Goyal to offload 24 per cent stake to Etihad.

Nov 12, 2013: Fairplay watchdog Competition Commission of India headed by former civil aviation secretary Ashok Chawla also clears the deal. However, one member gives a dissent note.

Nov 20, 2013: Jet Airways and Etihad Airways announce the closure of a Rs 2,069 crore deal for the Abu Dhabi-based carrier to pick up 24 percent equity in the Indian airline, making it the first foreign direct investment in a domestic carrier by an overseas airline.