Jet Airways (India) and United Arab Emirates-based Etihad Airways forged a strategic alliance under foreign direct investment (FDI) policy of Government of India. As per the deal, Etihad Airways has agreed to subscribe for 2.72 crore new shares in Jet Airways at a price of Rs 754.74 per share. The value of this equity investment is $379 million and will result in Etihad Airways holding 24% of the enlarged share capital of Jet Airways. Etihad Airways' wider overall commitment to Jet Airways includes the injection of $220 million to create and strengthen a wide-ranging partnership between the two carriers. As part of this Etihad Airways paid $70 million to purchase Jet Airways' three pairs of Heathrow slots through the sale and lease back agreement announced on 27 February 2013. Jet Airways continues to operate flights to London utilising these slots.
An amount of $150 million will be invested by Etihad Airways by way of a majority equity investment in Jet Airways' frequent flyer program "Jet Privilege", subject to appropriate regulatory and corporate approvals and final commercial agreements which are expected to be completed within the next six months.
Under the strategic partnership, which will be subject to full regulatory and shareholder approval, the airlines will gradually expand existing operations and introduce new routes between India and Abu Dhabi, providing an ever wider choice to the travelling public. They will combine their network of 140 destinations, with Jet Airways establishing a Gulf gateway in Abu Dhabi and expanding its reach through Etihad Airways' growing global network.
Passengers from 23 cities in India will benefit from direct connections to international destinations. New flights from Jet Airways' home hubs and metro airports will further strengthen its current operations from these airports. Jet Airways' vision continues to be to develop Delhi and Mumbai airports as its primary home hubs and connecting them to Asian, European and other regions.
A key component of the wide-ranging partnership is expanded codesharing on flights with passengers benefiting from reciprocal 'earn-and-burn' rights on the airlines' frequent flyer programs.
The proposed codeshare expansion will significantly enable Etihad Airways to tap into India's rapidly growing travel market, providing additional passenger traffic to Etihad Airways' Middle Eastern, North American and European destinations, and give Jet Airways passengers from various cities access to an expanded network.
Key benefits for both airlines will flow from synergies and cost savings in areas including fleet acquisition, maintenance, product development and training. The airlines will explore joint purchasing opportunities for fuel, spare parts, equipment and catering supplies, as well as external services such as insurance and technology support.
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Other areas of co-operation will include joint training of pilots, cabin crew and engineers, as well as maintenance of common aircraft types and the consolidation of guest loyalty programs. A joint project management office will be set up to ensure delivery of all synergy benefits to both parties.
Jindal Steel & Power will declare its Q4 results today, 25 April 2013. Bata India, Biocon, Delta Corp, Gillette India, Hindustan Zinc, IDBI Bank, Idea Cellular, Indiabulls Real Estate, L&T Finance Holdings, Procter & Gamble Hygiene & Healthcare, Rallis India, Stride Arcolab and United Phosphorus, among others, will also declare their January-March 2013 quarter results today, 25 April 2013.
TCS after market hours on Tuesday, 23 April 2013, announced its Intelligent Testing System (ITS) solution, designed to help customers automate the testing lifecycle. The new solution is being developed through TCS' existing partnership with CA Technologies and combines TCS' innovative process and automation tools with CA LISA Service Virtualization software. TCS is premiering this new offering, which will be generally available in May 2013, at CA World 2013 in Las Vegas, NV.
ITS features engineering-based accelerators and built-in agile tools and will allow TCS and CA Technologies' customers to automate the entire test cycle, reduce dependency on components and provide faster time to market, leading to higher quality while minimizing costs. For use across all industries, ITS will allow users to test their applications intelligently while adhering to industry-specific regulatory requirements.
TCS is demonstrating the ITS solution at CA World from April 21-24, 2013 in Las Vegas, NV. The company is a Gold Sponsor at this year's event.
Axis Bank's net profit rose 21.75% to Rs 1555.15 crore on 18.39% rise in total income to Rs 9054.72 crore in Q4 March 2013 over Q4 March 2012. The bank announced Q4 results on Wednesday, 24 April 2013. Axis Bank's board of directors have recommended the payment of dividend of Rs 18 per share for the year ended 31 March 2013.
GMR Infrastructure said on Wednesday, 24 April 2013 that Mr. Subba Rao Amarthaluru, Group Chief Financial Officer has decided to pursue his career interests elsewhere. Mr. Madhu Terdal has been appointed as Group Chief Financial Officer of GMR Infrastructure in the place of Mr. Subba Rao Amarthaluru with effect from 24 April 2013. Mr. Subba Rao Amarthaluru will continue to be in the services of the company till July 2013 to ensure smooth transition.
Mahindra & Mahindra Financial Services' consolidated net profit rose 42.89% to Rs 346.36 crore on 33.35% rise in total income to Rs 1189.32 crore in Q4 March 2013 over Q4 March 2012. The company announced Q4 results after market hours on Tuesday, 23 April 2013.
Meanwhile, the board of Mahindra & Mahindra Financial Services approved increasing the borrowing limit from Rs 30000 crore to Rs 38000 crore, in order to further expand its business and to meet its increased financial needs. The proposal is subject to shareholders' approval through postal ballot process.
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