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CCEA gives approval to Jet-Etihad deal

Friday, 04 Oct 2013
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The Cabinet Committee on Economic Affairs (CCEA), has approved Etihad Airways' Rs 2,060 crore investment in Jet Airways.


The approval comes five months after the two airlines concluded an agreement enabling Etihad to pick up 24 per cent stake in Jet and develop a strategic and commercial partnership with the Jet Airways.


The proposal was deferred several times at the Foreign Investment Promotion Board (FIPB), and clarifications were sought by various agencies, including the ministries of finance, civil aviation and corporate affairs, the department of industrial policy and promotion, and the Securities and Exchange Board of India (Sebi).


The deal still requires approval from the Competition Commission of India (CCI).


Apart from the Rs 2,060 crore investment, the deal allows Jet to collaborate with Etihad on commercial, marketing and sales and technical matters, and expand its network.

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