Jet-Etihad deal: PMO dismisses media reports about disagreement within Govt.

The Prime Minister Office (PMO) on Tuesday dismissed media reports about the disagreement within the government or between the Ministers and Prime Minister over the India-UAE bilateral air services agreement on the Jet Airways-Etihad deal.

"There have been media reports over the last few days on the India- UAE (Abu Dhabi) Bilateral Air Services Agreement and on the Jet Airways-Etihad equity stake proposal. Some of these reports have inferred that PMO is playing a role in the Jet Airways-Etihad proposal. The allegations in some media are factually incorrect and baseless. There is absolutely no disagreement within the government or between the Ministers and Prime Minister on the matter. The Prime Minister is neither washing his hands off the Bilateral Air Services Agreement nor is the Prime Minister's Office trying to do a U-turn on the issue now," said a statement issued by the PMO.

The PMO said that there is an inter-governmental agreement on seat entitlements and concerns the governments of the two countries.

On the other hand, the equity stake proposal between Jet Airways and Etihad is a private agreement involving FDI which has to be as per the laws of the land.It asserted that the two issues are different and need not be mixed up.

The PMO also said that Jet-Etihad equity issue is under examination and there is no question of disowning it as it is not an agreement with the government.

Civil Aviation Minister Ajit Singh earlier in the day said the Jet Etihad deal will be discussed by the Union Cabinet as the decision on the deal was deferred citing control and ownership issues.

The deal, which is the largest foreign investment proposal in the aviation sector, is facing regulatory hurdles with various ministries raising major concerns over the ultimate control of Jet Airways post transaction.

Janata Party President Subramanian Swamy and senior BJP leader Jaswant Singh had earlier written to Prime Minister Dr. Manmohan Singh raising questions and alleged security implications over the deal.