Etihad CEO meets Ajit Singh

Etihad Airways chief executive James Hogan met civil aviation minister Ajit Singh even as the airline awaits regulatory clearance for its Rs 2,058-crore investment in Jet Airways (India). The meeting took place in New Delhi a couple of days ago. Singh confirmed the visit. “It was a courtesy meeting,” said the minister.  

According to a Reuters report, the meeting was to “review progress on the finalisation” of the deal. “We are working very closely with the Indian government and regulatory authorities to ensure we meet all the requirements of the new foreign direct investment legislation,” Hogan said in an email statement to Reuters.  

In April, the two airlines signed a deal under which Abu Dhabi-based Etihad agreed to pick up a 24 per cent stake in Jet. The government also revised traffic rights for Abu Dhabi from 13,000 to 50,000 weekly seats.

The deal awaits clearance from the Cabinet Committee of Economic Affairs and the fair trade regulator, Competition Commission of India. In July, the Foreign Investment Promotion Board gave a conditional nod to the deal. The two airlines have extended the deal closure deadline to September 31.“We have agreed to extend the long-stop date till the end of September as we continue to work through the details to finalise the regulatory process,” said an Etihad spokesperson.

“The revised agreements are expected to be endorsed by the Competition Commission of India and the Indian government imminently,” said the Etihad statement, according to the Reuters story.  

Similarly, the revision in seat entitlements between India and Abu Dhabi is awaiting a Cabinet nod. Jet and Etihad are also waiting for civil aviation ministry clearances to expand code-share pacts on new routes.