Millennium Post

Competition Commission studying `2,000-cr Etihad-Jet joint venture

Fair trade regulator Competition Commission of India (CCI) is examining the over Rs 2,000-crore deal between leading carrier Jet Airways and Abu Dhabi-based Etihad Airways.

The Competition Commission of India has received an application seeking approval for the proposed Jet-Etihad transaction. 'We are looking into the deal,' a senior Competition Commission of India  official said.

Forging a strategic alliance, Jet has decided to sell 24 per cent stake to Etihad Airways for about Rs 2,058 crore. The deal would mark the first investment by a foreign carrier in an Indian airline since the change in foreign direct investment (FDI) policy.

Most of the merger and acquisition deals require approval from the Competition Commission of India, which keeps a tab on anti-competitive practices in the market place. Under the proposed deal, Jet Airways would offload sell 27.26 million shares in a preferential offer to Etihad at Rs 754.74 a piece.

'The value of this equity investment is $379 million (about Rs 2,058 crore) and will result in Etihad Airways holding 24 per cent of the enlarged share capital of Jet Airways,' the two airlines had said in April.

The alliance is also expected to bring additional traffic, frequencies and revenues to metro airports, as well as several non-metro airports of the Airports Authority of India.
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