Jet Airways and Etihad Airways forge strategic alliance under FDI policy of government of India
Etihad Airways to invest US$379 million for a 24 per cent stake in Jet Airways

• Strategic investment under FDI policy of the Government of India will deliver wide-ranging revenue growth and cost synergy opportunities for both airlines
• Alliance will bring significant passenger benefits with expanded codesharing, creating a combined network of 140 destinations
• Alliance will bring significant benefits to the Indian economy, both in terms of growth, job creation, trade and tourism
• Jet Airways passengers from 23 cities in India to gain direct access to an expanded global network
• Jet Airways to enhance its services from its primary hubs of Delhi and Mumbai, and introduce new flights from Hyderabad and Bangalore
• The strategic alliance between the two airlines will bring additional traffic, frequencies and revenues to metro airports, as well as other airports of AAI
• New India-Abu Dhabi routes and Jet Airways to establish a Gulf gateway for flights to the US, Europe, Africa and the Middle East
• The strategic investment enables Etihad Airways to tap into India’s fast-growing 42 million strong travel market
• Both airlines' passengers will benefit from fully integrated frequent flyer programs with reciprocal ‘earn-and-burn’
• Alliance will result in both consumer benefits and/or all round efficiencies
• This strategic investment with a US$600 million commitment from Etihad Airways will help further strengthening of Jet Airways financial position.

Etihad Airways of the United Arab Emirates and Jet Airways of India today announced that the UAE national carrier has agreed to subscribe for 27,263,372 new shares in Jet Airways at a price of INR754.74 per share. The value of this equity investment is US$379 million and will result in Etihad Airways holding 24 per cent of the enlarged share capital of Jet Airways.

Etihad Airways' wider overall commitment to Jet Airways includes the injection of US$220 million to create and strengthen a wide-ranging partnership between the two carriers.

As part of this Etihad Airways paid US$70 million to purchase Jet Airways’ three pairs of Heathrow slots through the sale and lease back agreement announced on 27 February 2013. Jet Airways continues to operate flights to London utilising these slots.

An amount of US$150 million will be invested by Etihad Airways by way of a majority equity investment in Jet Airways’ frequent flyer program "Jet Privilege", subject to appropriate regulatory and corporate approvals and final commercial agreements which are expected to be completed within the next six months.

Under the strategic partnership, which will be subject to full regulatory and shareholder approval, the airlines will gradually expand existing operations and introduce new routes between India and Abu Dhabi, providing an ever wider choice to the travelling public. They will combine their network of 140 destinations, with Jet Airways establishing a Gulf gateway in Abu Dhabi and expanding its reach through Etihad Airways’ growing global network.

Passengers from 23 cities in India will benefit from direct connections to international destinations. New flights from Jet Airways’ home hubs and metro airports will further strengthen its current operations from these airports. Jet Airways’ vision continues to be to develop Delhi and Mumbai airports as its primary home hubs and connecting them to Asian, European and other regions.

Details of the investment were unveiled by Etihad Airways President and Chief Executive Officer, James Hogan, and the Chairman of Jet Airways, Naresh Goyal. Mr Hogan said: “We are pleased to have reached this significant stage in India with Jet Airways and are certain the partnership will bring significant benefits and opportunities for global growth to both airlines.

“It is expected to bring immediate revenue growth and cost synergy opportunities, with our initial estimates of a contribution of several hundred million dollars for both airlines over the next five years.

“The Indian market is fundamental to our business model of organic growth partnerships and equity investments. This deal will allow us to compete more effectively in one of the largest and fastest-growing markets in the world.”

“We look forward to collaborating with Jet Airways and constructively working together with them and their stakeholders to build a sustainable, competitive and profitable airline.”

Mr Goyal said: “I would like to thank the Government of India, especially the Ministries of Civil Aviation, Commerce and Industry, and Finance, for having the foresight to introduce the historic reform of allowing foreign direct investment into civil aviation in India. Infusion of FDI in the domestic sector will result in the improvement of the economics of aviation, grow traffic at our airports and create job opportunities.

“I am extremely happy to be in a partnership with an airline that shares our customer-centric operational philosophy and ethos. I have no doubt that this partnership with Etihad Airways is a win-win situation for all our stakeholders, especially our guests, who will now have access to a much expanded global network.
“This transaction further strengthens the balance sheet of Jet Airways and, more importantly, underpins future revenue streams, which will accelerate our return to sustainable profitability and liquidity.”

A key component of the wide-ranging partnership is expanded codesharing on flights with passengers benefiting from reciprocal ‘earn-and-burn’ rights on the airlines’ frequent flyer programs.

The proposed codeshare expansion will significantly enable Etihad Airways to tap into India’s rapidly growing travel market, providing additional passenger traffic to Etihad Airways’ Middle Eastern, North American and European destinations, and give Jet Airways passengers from various cities access to an expanded network. Current estimates predict the size of the Indian market to grow to 42 million travellers over the next five years at a rate of 10 per cent per year, while the Indian middle class, which provides the majority of air travel demand, is forecast to grow by 200 million, over the next eight years.

Etihad Airways currently flies to nine Indian destinations including Delhi, Chennai, Mumbai, Kozhikode, Thiruvananthapuram, Hyderabad, Bangalore, Ahmedabad and Kochi, with a total of 59 flights per week.

The partnership will also help drive a significant increase in traffic growth through Abu Dhabi International Airport, as well as Jet Airways’ hubs of Mumbai and Delhi international airports.

Key benefits for both airlines will flow from synergies and cost savings in areas including fleet acquisition, maintenance, product development and training. The airlines will explore joint purchasing opportunities for fuel, spare parts, equipment and catering supplies, as well as external services such as insurance and technology support.

Other areas of co-operation will include joint training of pilots, cabin crew and engineers, as well as maintenance of common aircraft types and the consolidation of guest loyalty programs. A joint project management office will be set up to ensure delivery of all synergy benefits to both parties.

Substantial ownership and effective control will remain with Indian nationals, with Mr Goyal as the non-executive Chairman holding 51 per cent of the company. Etihad Airways’ investment in Jet Airways follows the minority equity stakes taken by the airline in airberlin, Air Seychelles, Virgin Australia, and Aer Lingus over the last 12 months.

Etihad is being advised by HSBC, DLA Piper, Amarchand & Mangaldas & Suresh A. Shroff & Co and PricewaterhouseCoopers on this transaction. Jet Airways is being advised by Mr Harish Salve, Gagrats, ELP, Ernst & Young, DSP Merrill Lynch Limited and Credit Suisse.

Jet Airways announces the introduction of two new Airbus A330-300 into its fleet

Jet Airways, India’s premier international airline, today announced the planned induction of four new state-of-the-art Airbus A330-300 series aircraft into its fleet. The airline took delivery of one of these new aircraft today, from the manufacturer’s headquarters in Toulouse, France. The airline is expected to take delivery of an additional, brand new Airbus A330-300’s later this month. Thus marking the expansion of Jet Airways’ Airbus fleet, which currently has 11 Airbus A330-200 aircraft.





In keeping with the airline’s commitment to continually innovate and differentiate its product for a heightened in-flight experience, the first two of these brand new Airbus A330-300 aircraft, will replace the airlines two leased Airbus A300-200 aircraft. For the other 2 aircraft will progressively be deployed for the airlines international routes.

The first of the new series of Airbus A330-300 aircraft will commence commercial flight operations with effect from December 22, 2012. This flight will operate as 9W 228/227 on the Mumbai – Brussels – Mumbai sectors. Jet Airways’ new Airbus 330-300 will set new benchmarks in, in-flight comfort across both its seating classes.

With 259 Economy seats, the aircraft offers substantially more leg room in the Economy section and the all new Première (business class) seats have a contemporary ‘Contour Vantage 2’ seat control features with 34 all new air cushioned seats which are the embodiment of comfort.

The long haul Airbus A330-300 also features an advanced in-flight entertainment system that offers a range of the latest blockbuster movies and television programs. All these advanced features bear testimony to Jet Airways’ commitment to offer its guests an enriching in-flight experience, while delivering excellence in service quality through constant product innovation.

Expressing Jet Airways’ commitment to its guests, Sudheer Raghavan, Chief Commercial Officer, Jet Airways, said, “We are committed to our guests and have continuously strived not only to transform the in-flight experience for them, but have also endeavored to set industry benchmarks in comfort, safety, security and convenience. A simple example is the new seat belts that incorporate an air bag for guest safety.

The Airbus A330 – 300 is also a more efficient aircraft in terms of operational costs and proven reliability, on long haul routes, thus helping the airline plan its international network.

'With unmatched performance, unrivalled economics and reliability, the A330 is the ideal aircraft for medium to long haul routes said Dr. Kiran Rao, Airbus EVP Strategy, Sales and Marketing. “The A330 allows airlines to offer the latest in state of the art cabin products and this is amply demonstrated by Jet Airways in their new Première class (business cabin). We wish Jet Airways all the best as they expand with their fleet with one of the worlds most successful and comfortable wide-body aircraft.

The increased passenger capacity of an additional 73 seats (4 Première and 69 Economy seats) is a result of the stretched fuselage of the Airbus A330-300 at an extra 17.7 ft. This allows the Airbus A330’s to retain its level of comfort and significantly quieter cabin, making for a most relaxing flying experience.

The Première (business class) in the all new Airbus A330-300 comes with a horizontal flat bed for maximum comfort and more personal space for guests. The configuration of the Première (business class) cabin allows guests to choose between 2 individual seats, adjacent to each other. The all new Vantage 2 suite controls incorporated into the new Airbus A330-300 are equipped with Passenger Control Units (PCU) to activate various features and help the guests adjust to the most comfortable seating position. Pumped air lumbar support, with a massage feature further adds to the comfort of passengers. The newly designed Premiere seats boast individual stowage for guests, a cocktail table area on the side console, leather armrests, a robust table with simple deployment and individual in-flight entertainment through a 12.1” monitor.

These seats are arranged such that the foot wells for each are under the console of the seat in front, resulting in staggering space between each row of seats. The Première seats also feature a PC power socket and USB socket both of which can charge various electrical items.

A unique eXport socket located immediately below the video screen is for guests to plug-in their personal Apple devices such as iPods, iPads and iPhones allowing them to view their personal video content on the video screen and/or listen to music, while allowing for the device to be charged. For our specially abled guests, the dropping side arm in the seats adjacent to the aisle, assists guests to get in and out of their seats with absolute ease and comfort.

The Airbus A330-300 incorporates Airbus’ latest technology, which includes its digital fly-by-wire flight controls and lightweight composite structures in its airframe, adding to the operational efficiency of the aircraft. A lighter, brighter and more spacious cabin results from updated features that include smoother contours, new interior styling, state-of-the-art LED lighting and newly-designed air conditioning units adding to the comfort of the guests. Onboard mood lighting and advanced safety features like an inbuilt airbag within the seat belt in both the Première and the Economy add to guest security and safety. The Economy class will also offer new comfortable seats with improved in-flight entertainment system for a relaxed flying experience.

The Airbus A330-300, for optimal use in the long haul market will also provide Jet Airways with increased operational efficiency through lower costs. The new Airbus A330 -300 is a benchmark for continuous improvements ranging from weight reductions in the airframe bringing down fuel consumption costs to system improvements including engine upgrades and advanced navigation systems in the cockpit, all of which make for a memorable flying experience.

Jet Airways, Mumbai, December 12, 2012