Etihad to invest in Jet Airways

[sn26567]

Etihad looks set to make India’s Jet Airways its latest investment opportunity, in a bid that will be seen as a vote of confidence in the loss-making carrier.

Abu Dhabi-based Etihad is believed to be poised to take advantage of a relaxation of rules by the Indian government restricting foreign investment in its airlines. In September, foreign carriers were permitted to buy stakes of up to 49 per cent in the country’s carriers, which are at the mercy of more efficiently-run foreign airlines. This is particularly so from the Middle East due to the amount of migrant labour that flows between the two regions.

The Times of India said that Jet Airways, owned by the multi-millionaire Naresh Goyal, has had staff in Abu Dhabi, including its chief commercial officer, for almost a month while the small print is agreed.

Etihad favours minority investments in its partners and has been on a shopping spree. In the last year, it has bought a 29 per cent stake in Air Berlin, making it the second-largest shareholder in the carrier. It also bought a 40 per cent stake in Air Seychelles and three per cent of Aer Lingus.

Jet Airways is a prospective member of Star Alliance, but Etihad has resolutely avoided joining any global alliance, preferring the approach of taking minority stakes instead.

Separately, Air Asia is reported to be in talks with SpiceJet, the Indian budget carrier which is also loss-making. SpiceJet is owned by the Sun Group, an Indian conglomerate that has US backers.

Source: BTUK

[sn26567]

Jet Airways has confirmed it is in discussions with Abu Dhabi-based Etihad Airways to take a stake in the Indian carrier.

In a regulatory filing with the Bombay Stock Exchange, Jet said talks “regarding a potential investment” by Etihad had begun following a recent ruling allowing foreign airlines to buy up to 49% equity in Indian carriers.

Jet said an agreement on terms has not yet been reached.

Indian media outlets have recently speculated Etihad would take up to a 24% stake in the loss-making Jet. Etihad has previously refused to comment, but CEO James Hogan said last month it was interested in the fast-growing Indian market.

More from ATW online: http://atwonline.com/airline-finance-da ... tihad-0104

[LJ]

Rumours indicate that a deal will be signed in the first week of February, though AI objected to an investment by EY in 9W. In addition, some rumours indicate that as a result of the investment 9W will move its BRU hub to AUH and MUC. Then again, we've heard stories about moving its BRU before but never materialised.

http://www1.economictimes.indiatimes.co ... 186783.cms

[Darjeeling]

MUC... Maybe. Though I question the added value it'd bring. It isn't an AB hub either.

AUH... I highly doubt it. You can't fly AUH-North East America with 332/333 unless payload restricted.

Let's not forget that EY is more than ever very close to joining S.T, in that view, a mini-hub of 9W in AMS would maybe make more sense.

[RoMax]

MUC... Maybe. Though I question the added value it'd bring. It isn't an AB hub either.

AUH... I highly doubt it. You can't fly AUH-North East America with 332/333 unless payload restricted.

Let's not forget that EY is more than ever very close to joining S.T, in that view, a mini-hub of 9W in AMS would maybe make more sense.

And what about 9W handling the India-AUH part and Etihad handling the AUH-North America sectors (Etihad currently operates ORD, JFK and YYZ with IAD comming soon)?! When looking at AUH you can't look at 9W OR Etihad operating such routes, you have to look at 9W and Etihad.

When talking about Skyteam and AMS. I don't know either, you already have Delta and KLM playing a very dominant game in that market. 9W could better use their recourses somewhere else.

[LJ]

And what about 9W handling the India-AUH part and Etihad handling the AUH-North America sectors (Etihad currently operates ORD, JFK and YYZ with IAD comming soon)?!

That's probably exactly what EY wants 9W to do (and if you bring in some cash you can make a few requests which benefit your own company). Moreover, as EY will serve GRU and has a few African destinations.

[quixoticguide]

It's all about the flights from the UAE to India.

"Etihad in turn will get a bigger chunk of India’s overseas fliers. Gulf airlines such as Emirates, Air Arabia and Etihad carry the biggest chunk of international traffic out of India, but their flights to India are limited by bilateral air-traffic agreements "

[Boeing767copilot]

Jet Airways will gradually scale down operations at its current international hub of Brussels and move this to Abu Dhabi, said the two people. Jet Airways started using the Belgian capital as a hub in September 2007, when it began flying to Europe, making it the first Indian airline to have full-scale operations outside the country besides state-owned Air India.


http://www.livemint.com/Companies/LaJLX ... 00-mn.html

[KriVa]

Might this be a step which makes BRU more interesting for other airlines, or will it just be a rather large loss of pax per day?

[RoMax]

I'd bet on a big loss of pax per day for the comming months. On the other hand, this opens perspectives for SN to launch India (Delhi or Mumbai), it would make an evening flight to EWR much easier and they could take over Montreal from AC as AC could operate non-stop YYZ.
On the other hand, that recquires quite some new aircraft, and I doubt SN will do that within this or next year besides minor AFI expansions and probably BOS. This year will already see IAD, so we would be very lucky to see something else besides that (only in the case of a 9W pull back, SN/LH may change their minds?!)

[AVION1]

In Frensh

Jet Airways devient la partenaire indienne d’Air France

Longtemps annoncée, toujours reportée, l’entrée de Jet Airways, la première compagnie privée indienne, dans la sphère du groupe Air France-KLM va se concrétiser, contenue dans la corbeille de noces de la prise de participation de 24% par Etihad, la nouvelle alliée d’Air France dans le Golfe.

"C’est pour nous un point très positif de cet accord", nous commente, avec un grand sourire, Bruno Matheu, directeur général délégué Activité passage long-courrier d’Air France. Une entrée dans SkyTeam devrait, logiquement, suivre.

Cette alliance aura alors une avance sur les autres qui n’ont pas réussi à percer le marché prometteur de l’Inde. L’entrée au capital d’Etihad a été rendue possible depuis le 1er janvier avec une modification de la loi indienne qui porte à 49%.

Jet Airways et son propriétaire Naresh Goyal, en même temps agent général d’Air France, qui rêvent depuis longtemps de vols vers Paris, pourraient être incités à déplacer ses vols de son mini-hub de Bruxelles vers Roissy-CDG.

Les dessertes, déficitaires, vers l’Inde et l’Amérique du Nord sont alimentées depuis l’Europe par SN Brussels, compagnie en partie possédée par Lufthansa. Ce partenariat deviendrait alors contre nature dans la nouvelle configuration.

[sn26567]

Etihad board needs more time to decide on Jet Airways deal

Etihad Airways (EY) chairman Sheikh Hamed bin Zayed Al Nahyan has told Reuters that Etihad's board would still be reviewing a proposal to acquire a 24% stake in Jet Airways (9W) and that it would be too early to make a final decision.

According to Al Nahyan the proposed transaction still needs to be revised. Etihad CEO James Hogan had confirmed last week that due diligence would still be in progress. Several Indian media reports had suggested in recent days that a deal would be finalized within days.

Source: ch-aviation

[LJ]

Jet Airways sold its slots at LHR to EY and leased them back. The price for the 3 slot pairs was USD 70mio. Though not a real investment, it seems as if 9W and EY are getting closer.

[RoMax]

Apparently the people behind Etihad are affraid the Indian government will take 'bad' decisions in the future, forcing Etihad to pull out of Jet Airways again. The government currently says they stand behind the investment, but Etihad is not sure if it'll stay like this...and I can't blame them for that

[LJ]

According to the WSJ the deal will be revised. Instead of buying 9W directly, it will be done via another company which must be set up. If correct, the deal will probably not be approved for several weeks.

http://online.wsj.com/article/SB1000142 ... 09466.html

Moreover, according to some rumours 9W is evaluating a second daily flight from BOM to YYZ. However, the flight will be via AMS instead of BRU. In addition, 9W would start DEL - AMS. This would be in addition to their flights to BRU. We have to see if this materialises as it wouldn't be the first time rumours suggest that 9W will come to AMS.

[Boeing767copilot]

Jet Airways likely moving global operations to Abu Dhabi: report


http://gulfnews.com/business/aviation/j ... -1.1174160

[OO-ITR]

Jet Airways likely moving global operations to Abu Dhabi: report


http://gulfnews.com/business/aviation/j ... -1.1174160

in my opinion not a bad idea...

[Boeing767copilot]

Jet Airways board approves stake sale to Etihad Airways


http://www.livemint.com/Companies/zY6HS ... board.html

[OO-ITR]

Jet Airways board approves stake sale to Etihad Airways


http://www.livemint.com/Companies/zY6HS ... board.html

I wonder how quickly Jet Airways can/will move out of BRU?

[RoMax]

I wonder how quickly Jet Airways can/will move out of BRU?

I wonder how quickly SN/Star will fill up the gap. If 9W leaves, I can see SN or UA starting another EWR flight. Air Canada starting non-stop Toronto with SN taking over Montreal. And Delhi/Mumbai...I doubt SN will start flights to India in the near future, but I believe the demand is there for at least one daily India-flight (Jet Airways developed the Belgium-India market (besides their main goal of the BRU-hub: India-North America), we shouldn't loose that all).