Markets: Eerie calm

Markets: Eerie calm

it is not clear when market sentiment can change; as in the past, it can be quite sudden.
At a turn and yet not

At a turn and yet not

RBI could be tempted to cut policy rate to support growth at its bi-monthly review.

Etihad deal on 24% stake in Jet likely in 10 days

Jan 03 2013, 10:43 IST
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Sources also said that Jet Airways is talking to Etihad since September last year.  (Reuters) Sources also said that Jet Airways is talking to Etihad since September last year. (Reuters)
SummaryAbu Dhabi-based Etihad is likely to prefer Jet Airways over Kingfisher Airlines in a deal.

Abu Dhabi-based Etihad is likely to prefer Naresh Goyal-promoted Jet Airways over Vijay Mallya-promoted Kingfisher Airlines in a deal, which could range between Rs 1,500 crore to Rs 1,800 crore for a 24 per cent stake in the carrier.

A source in the government said that the deal is likely to be signed in the next ten days. “It seems that Jet Airways has been clearly preferred much ahead of Kingfisher Airlines by Etihad and deal could see the light of day in ten days,” said the source.

A Jet Airways spokesperson did not reply to queries.

Sources also said that Jet Airways is talking to Etihad since September last year and could result in the airline shifting its international base from Brussels to Abu Dhabi.

The shift of international base could also give Jet access to aviation turbine fuel at much cheaper rates, according to the broad contours of the deal.

As part of the deal, both the airlines will operate flights on code share and Jet Airways is also likely to put on hold its plan to join the Star Alliance.

If the deal goes through, Jet Airways will be the first airline to get investments from a foreign airline after the government relaxed norms to allow foreign airlines buy up to 49 per cent stake in Indian carriers.

AI suspends official for negligence

Fixing accountability for the cancellation of a Mumbai-Singapore flight, Air India, has suspended and removed an operations department official for failing to put in place the crew for the flight. This was done following directions from aviation minister Ajit Singh.

“Capt H Y Samant, GM (Operations), was suspended for gross dereliction of duty after the flight (AI-330)... was cancelled because of non-availability of crew,” Air India said. PTI

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