Jet-Etihad pact a win-win deal, says Ajit Singh

Jet Airways will sell a 24% stake to Etihad Airways in a $379 mn deal

 

Describing the over Rs 2,000 crore business proposal between Jet and Etihad airlines as a win-win deal, Civil Aviation Minister Ajit Singh today said it will be beneficial for flyers.

In the first Foreign Direct Investment (FDI) deal after India opened up the aviation sector, Jet Airways will sell a 24% stake to Etihad Airways in a $379 million (Rs 2,058 crore) deal.

"It is a win-win deal, good for the flyers. It provides more competition and more connectivity and better efficiency," Singh told reporters outside Parliament.

Asked whether the deal will escalate the fare war and competition in the market, the Civil Aviation Minister said, "Competition is always good for any industry."

About the possible impact on the national carrier, he said, "Air India has very limited operations today. If you do not allow other airlines to come wherever they want how will the passengers fly. Air India should look after themselves and gear up.