 "Etihad-Jet deal likely to get approvals in 2 weeks: Ajit Singh")
“Etihad’s proposed move to pick up around 24 per cent stake in Jet Airways is likely to receive all regulatory clearances in the next two weeks,” he told reporters on the sidelines of Aero India 2013 at the Yelahanka Air Force station.
This would be the first such deal between an Indian carrier and a foreign company after the government liberalised the foreign direct investment (FDI) norms last year to allow overseas carriers to pick up to 49 per cent stake in domestic airlines.
Top officials of Jet Airways and Etihad have already held discussions with the aviation and commerce ministries to inform the government about the deal.
The two airlines already have a codeshare agreement through which they can sell tickets on each other’s flights.
Etihad, a UAE-based airline, has picked up minority stakes in various airlines across the globe in recent years. It owns 10 per cent stake in Australian airline Virgin Australia, 2.89 per cent stake in Ireland-based Aer Lingus, 40 per cent stake in Air Seychelles and 29.1 per cent stake in German carrier Air Berlin.
On Kingfisher Airlines, Singh said that he had no update on the issue. The Vijay Mallya-controlled airline has totally grounded its operations laded with heavy debts with majority of its employees not being paid their salaries. The troubled airline has been making some efforts to revive its operations.
On the delayed salaries for the staff of state-owned airline Air India, the aviation minister said that all the employees have been assured of their salaries.
Earlier, speaking at the inaugural event of Aero India 2013, Singh said that India is a still a long-term growth market. He said in the next 10 years the Indian aviation sector would carry about 180 million passengers, of which 80 million will be international from the current level of 60 million and 40 million, respectively.
The minister added that India remains one of the major aviation market s across the world, but by 2020, it could become one among the top five.
He said the government has already approved the setting up of 15 new greenfield airports under the public-private partnership model.
“Our next focus is on providing air connectivity to remote and interior areas of the country by developing low cost airports and encourage the growth of regional airlines,” said Singh.