Co-pilots

Etihad Airways is betting big on India. The ambitious UAE carrier is throwing indebted Jet Airways, the largest publicly traded airline on the subcontinent, a $600-million lifeline. The deal buys Etihad a 24 per cent stake, control of Jet's loyalty programme, and landing slots at Heathrow. That makes it the first company to take advantage of newly relaxed foreign ownership rules in India, as it seeks to tap one of the fastest growing aviation markets in the world.
 Jet is one of India's top airlines but the price paid still looks a bit generous. Etihad is paying $380 million or a 32 per cent premium for its minority interest. That's on top of a 63 per cent rise in the share price since mid-September when reports of a deal between the pair first surfaced. That type of premium is usually justified by a change of control. In this case, Jet founder Naresh Goyal will remain non-executive chairman, and retain a 51 per cent stake.
 Goyal has obviously driven a hard bargain even though his company badly needed the funds. The airline has to repay $400 million each year. At the end of December, Jet had $134 million of cash on total debt of $2.2 billion and had already been forced to enter sale and lease back agreements ahead of the tie-up. With Etihad, it will have a deep-pocketed partner.The premium reflects the importance of India to Etihad. Over the last two years, the airline has snapped up minority stakes in Air Berlin, Virgin Australia, Aer Lingus and Air Seychelles but this is its biggest and most important bet. Only three hours away by air, India's population is over 150 times bigger than that of the UAE and can provide traffic for Eithad's routes to the US, Europe, Africa and the West Asia.
 The success of Etihad's bet will depend on the capacity of the two strong characters at the head of each airline to stay on friendly terms, in order to navigate difficult political waters. Goyal long opposed the entrance of foreign airlines into India. And Etihad Chief Executive James Hogan might want a bigger say in how the Indian carrier is run after handing over cash worth two thirds of Jet's market value. Working together, the pair could be a powerful partnership. If they ever fall out, it would be a disaster.
http://www.business-standard.com/article/opinion/co-pilots-113042500910_1.html
 

Is it time to sell the Jet Airways share?

Buy the rumour, sell the news” is an adage as old as the markets. By this logic, Jet Airways becomes a sell. The best possible news that could have been expected has hit the markets, when Etihad announced it would buy a 24 per cent stake in Jet Airways through a preferential allotment.
 The immediate benefit that could have been expected from the deal was that minority shareholders would get a chance to submit their shares in the open offer. But this is not going to happen as Etihad will be picking up only 24 per cent stake in the company, a tad short of the 25 per cent required to trigger the takeover code. Also, there will be no ‘change in control’ in the management of Jet Airways, another criterion for triggering the code. Thus, there is no immediate benefit for shareholders from the deal, apart from the change in perception.
 In the medium term, the Jet balance sheet will become a little healthier, with an improvement in its debt-equity ratio. Major gains from the deal for Jet will be in its international operations, rather than in India. There are synergies in schedule coordination, sharing of infrastructure, maintenance, sales offices and joint purchases. Hopes of Etihad reducing its number of flights to accommodate Jet Airways are unlikely to be met; Jet will have to make way for the bigger parent.
 There is little doubt that the deal is skewed in favour of Etihad, which it should be, as it is pumping in money. Etihad, which was having trouble increasing its current market share in India (low at two per cent), compared to 13 per cent of Emirates, will now have greater access to Indian cities through a deeper code sharing arrangement with Jet.
 From Etihad’s point of view this deal is akin to buying out a competitor and gaining market share. Etihad needs to fill its plane first and then think of helping Jet Airways survive. Being the national airline of the United Arab Emirates, the company has managed to strike a deal with the Indian government on seat expansion, with hopes of making Abu Dhabi a transit hub. Etihad would appreciate the burgeoning numbers of Indian passengers and Jet is the means to reach them.
 For Jet, the deal would result in an inflow of Rs 2,060 crore, which would disappear in a flash, given its huge pile of debt of Rs 12,600 crore. For the year ending March 2012, the company’s interest outgo (consolidated) was twice its operating profit. All that had remained in its net worth was Rs 130.9 crore. Without this deal, there was a threat of complete erosion of its equity.
 While Jet gets some breathing space with the fund inflow, allowing it some more room to leverage itself, the deal will do little to help the company face the challenging climate in India. With AirAsia expected to start operations, things might only get tougher. Etihad is a full-service airline and not a no-frills one like AirAsia. Thus, its expertise will be of little use for Jet Airways to carry out its operations in India.
 With Etihad getting some board representation, Jet Airways might find it difficult to operate as freely as it used to earlier. There is no doubt that valuable insights will come in from Etihad’s member but this will be only when Jet is not seen to be stepping on Etihad’s foot.
 The Jet Airways stock opened at the day’s high of Rs 688.60 and slipped continuously to close the day at Rs 635.20, near the day’s low. There were clearly more sellers in the stock than buyers.
 There is nothing in the short term for the stock, while the medium term picture is hazy. Should you still hold on to the shares?
http://www.business-standard.com/article/markets/is-it-time-to-sell-the-jet-airways-share-113042500162_1.html

Jet Airways, national carrier

In the absence of a national aviation policy, the government has been taking ad hoc decisions from time to time to address the concerns of the aviation sector. Being ad hoc in character, several decisions taken to respond to a particular crisis have often led to the creation of other problems for the industry. This should, however, not come as a surprise to anyone because the ministry of civil aviation, managed by bureaucrats, besides lacking the vision for the industry, does not have the requisite experience and understanding of the sector. If proof were needed to prove this point, one has only to see how the national carrier, Air India, has been systematically harmed through numerous decisions.
 A policy decision relating to foreign direct investment (FDI) by foreign airlines in domestic airlines, taken in September 2012, was welcomed by all, even though it came too late for Kingfisher Airlines, the airline that had originally mooted the demand. With the finances of most domestic airlines in disarray, debt on the balance sheet mounting, losses being incurred quarter after quarter, and banks refusing to extend any more loans, investment by foreign airlines was considered imperative for survival.
 Jet Airways was among the first to begin parleys with interested airlines, notably Abu Dhabi-based Etihad. After months of discussions, hopping through the power corridors in Delhi, meeting one minister after another for what was described as an exercise in seeking assurances for safety of investment, when the deal was finally struck earlier this week between the two airlines, it did not evoke the response one would have expected. Though there was unanimity that the two airlines would stand to benefit enormously, the bitterness came owing to the sweetener added by the ministry of civil aviation by way of granting over 40,000 additional seats per week on the India-Abu Dhabi sector over a three-year period. These seats were given away at a time when India was witnessing negative growth. Where was the need for additional capacity?
 This has led to a question: was the grant of additional seats factored in for Jet Airways to obtain a higher valuation compared to what was being discussed in January 2013? Given that the two announcements - stake sale and grant of additional seats - came within hours of each other, was an assurance on additional seats demanded by the airlines and given by the government before the pronouncement of stake sale? These are serious questions because, if the link can be established, it is not only akin to insider trading but also demonstrates how decisions can be forced out of the government by powerful individuals.Civil Aviation Minister Ajit Singh has scoffed at any such insinuation, stating that no assurance was held out. Can anyone expect policy makers to say anything else in their defence in such a situation? Also, can one ignore the clout that Naresh Goyal has always wielded with the government in the formulation of civil aviation policies?
 What is also interesting is the fact that grant of additional seats was preceded by a meeting chaired by the civil aviation secretary, in which all stakeholders participated. All domestic airlines, including Air India, and airport operators were unanimous in opposing the grant of seats in such huge numbers. Ignoring their pleas, the ministry still went ahead, giving rise to yet another question: was the meeting a ritual to be gone through, and why were views sought when they were not being considered? What were the compulsions that dictated the decision, without reduction of even a single seat from the demanded number? Isn't he answerable to the nation as to what prompted him to disregard the stakeholders' views, if not provide justification for overruling their views?
 The views expressed by the airlines and airport operators were indeed legitimate. If airlines felt that one airline would stand to gain at the expense of others, airport operators thought the creation of a hub for Indian traffic in Abu Dhabi will ensure that India will never have a hub of its own, besides adversely impacting the growth of Indian airports.
 One can always justify a decision, however dubious, by stating that the grant of seats will enhance competition, and will be in passengers' interest. But the question whether it is the government's business to sweeten the deal and help an airline obtain a higher valuation still can't be ducked.
 The government has formulated a turnaround plan for the national carrier and has already infused about Rs 8,000 crore of taxpayer money. Can Air India attain a turnaround in changed circumstances when someone else is being allowed to take away its traffic? What will it do with its large fleet of long-haul aircraft, which was increased from 10 to 50 by the same government? What will it do with its 350-seater B777-300 aircraft, which were bought on the assumption that it would get passengers from neighbouring cities to fly to destinations in Europe and the US, a market it will lose once Jet Airways begins operations from 23 Indian cities to Abu Dhabi for flying onwards?
 What one can also not ignore is the fact that the grant of additional seats on the India-Abu Dhabi sector is bound to give rise to similar demands from other countries. Will the government have a different yardstick for them? Consider a hypothetical situation of a southeast Asian carrier showing interest in SpiceJet. Will the government help create another hub in southeast Asia to facilitate FDI in SpiceJet by granting a huge number of seats? Market paradigms have indeed been changed by the government in one stroke. All other airlines will also be forced to relook at their business models and fleet acquisition plans in the changed circumstances.
 With the survival of Air India made still more difficult, let us welcome Jet Airways as the national carrier because it enjoys the patronage of the Government of India and has been given a head start!
http://www.business-standard.com/article/opinion/jet-airways-national-carrier-113042500916_1.html

AirAsia India files application to start operations

Newly-formed AirAsia India, the Indian arm of Malaysia's low-cost carrier AirAsia, has filed an application with the civil aviation ministry for permission to launch its operations, official sources said in New Delhi on Thursday.
 The airline had filed its application with the ministry on Tuesday.
 The joint venture company is likely to have at least six members on its board, comprising two nominees each from AirAsia and Tata Sons and one representative from Telestra Tradeplace.
 There would be an independent director on the board, who would also be the non-executive chairman.
http://www.business-standard.com/article/companies/airasia-india-files-application-to-start-operations-113042600008_1.html

Etihad Airways to get right of first refusal

The deal between Etihad Airways and Jet Airways has a ‘right of first refusal’ clause, which gives the Abu Dhabi-based airline an opportunity to increase its stake in the Indian carrier if the Jet promoters decide to sell further stake in future.
 The two airlines inked an alliance on Wednesday, under which Etihad will purchase 24 per cent stake in Jet Airways for about Rs 2,054 crore through the preferential allotment route.
 Prior to the allotment of preference shares, Jet Airways’ promoter Naresh Goyal, who holds 80 per cent in the airline through Isle of Man-registered Tail Winds, will sell about 10 per cent of his stake. This will make the airline comply with the 25 per cent minimum public shareholding requirement.
 Subsequent to the stake sale by existing promoters to public shareholders and allotment to Etihad, Goyal’s holding in the company will drop to 51 per cent. Etihad will own 24 per cent and the balance 25 per cent with be with minority shareholders.
 Etihad’s holding in the company will be categorised as promoter-holding and it will be treated as a person acting in concert (PAC), said people close to the development. They added that even if Etihad and Jet are treated as PACs, it would not trigger the obligation of the takeover code.
 However, some legal experts think otherwise. J N Gupta, founder of proxy advisory firm Stakeholder Empowerment Services and former executive director with the Securities and Exchange Board of India (Sebi), said if Jet and Etihad are PACs, it would trigger open offer under Sebi’s Substantial Acquisition of Shares and Takeovers Regulations.
 According to sources, Jet would appoint a new CEO, replacing Nikos Kardassis, who has been associated with the airline since 1994.
 While a Jet spokesperson termed appointment of a new CEO as “speculative information”, she did not respond to other issues.
 Senior counsel Harish Salve, who advised Jet during the deal, too, had avoided a comment on the right to first refusal clause in a television interview on Wednesday.
 Sources, however, said the new CEO has already been selected. There will be other changes in senior management as well, sources added.
 Kardassis is currently on medical leave and Hameed Ali, the chief operating officer, is holding charge of CEO post in the former’s absence.
 Ali, a Bahraini national, signed the deal with Etihad on behalf of Jet Airways on Wednesday.
 While Etihad is advised by HSBC, DLA Piper, Amarchand & Mangaldas & Suresh A. Shroff & Co and PricewaterhouseCoopers on this transaction, Jet Airways is advised by Harish Salve, Gagrats, ELP, Ernst & Young, DSP Merrill Lynch Limited and Credit Suisse.
http://www.business-standard.com/article/companies/etihad-airways-to-get-right-of-first-refusal-113042500639_1.html

Air travel map being redrawn as global economy evolves: Etihad

DUBAI: The global air travel map is being redrawn as growth rates slow in traditional markets and surge in evolving economies including India, Africa and Latin America, President and CEO of Etihad AirwaysJames Hogan has said.
Hogan's comments have come after the recent announcement by Etihad Airways of a 24 per cent strategic equity investment in Jet AirwaysBSE -2.33 %, the second largest airline in India.
 Delivering the fifth annual Airneth Lecture to aviation industry executives, policymakers and researchers in Amsterdam, Hogan said the major shift occurring in the global economy is impacting significantly the air transport industry, requiring airlines to reshape their networks and enter new partnerships in order to remain competitive.
 He said markets which would benefit most from the continued growth in air transport would be those in 'aviation-friendly jurisdictions' in which governments recognised the economic contributions of airlines and the technological advances and capabilities of aircraft.
 "Legacy markets are growing, but at a slower pace. Emerging markets are surging. Traffic patterns and demographics are changing. Traditional air transport hubs are declining in prominence, with growth constrained by inadequate infrastructure and ingrained political resistance to change.
 "The Arabian Gulf - the geographic centre of the world - is now evolving as the global centre of the air transport industry, with the number of passengers passing through Gulf hubs outstripping industry growth rates," said Hogan.
 IATA figures shows that in February, 2013, Middle East hub traffic was up by 10.6 per cent over February, 2012, compared with the global growth rate of 3.7 per cent.

Hogan said the airline industry is entering a new phase of consolidation, as no single carrier could satisfy the global growth in passenger traffic.
In addition to its new investment in Jet Airways, Etihad Airways has acquired stakes in airberlin (just under 30 per cent), Air Seychelles (40 per cent), Virgin Australia (8.56 per cent) and Aer Lingus (just under 3 per cent), and continues to explore opportunities where they make financial and strategic sense.
 Hogan also said a new hybrid business model is emerging, in which minority equity alliances are bridging the gap between full mergers and legacy alliances.
 "The new business model delivers benefits which previously were available only through full mergers or acquisitions," he said.
 These benefits include joint procurement, ross-utilisation of aircraft, joint training of pilots and cabin crew, shared sales forces in common destinations, and dual focus on revenue growth and cost reduction.
 He said growth also would be maximised in markets like Abu Dhabi where governments embraced and implemented open skies policies, and planned airports, infrastructure, airspace corridors and operational regulations to support the industry and its customers
http://economictimes.indiatimes.com/news/news-by-industry/transportation/airlines-/-aviation/air-travel-map-being-redrawn-as-global-economy-evolves-etihad/articleshow/19736771.cms

350 Baggage Theft Cases Reported At Indian Airports Since 2010

NEW DELHI, April 26 (Bernama) -- About 350 cases of baggage theft have been reported at domestic and international airports in the country since 2010, Press Trust of India (PTI) reported.
Minister of State for Civil Aviation K C Venugopal said in a written reply in the Rajya Sabha (upper house of Indian parliament) on Thursday that incidents of baggage theft were reported at 19 airports in the country.
 According to him, 105 cases were reported in 2010 with 35 at Mumbai airport, Delhi (26), Hyderabad (14), Kolkata (seven), Cochin (six), Jaipur (five), Chennai and Calicut (three each), Coimbatore and Bagdogra (two each) and one at Raipur airport.
 In 2011, out of 126 cases reported, Kolkata airport recorded the highest number at 32 followed by Delhi (31), Mumbai (28), Cochin (nine), Hyderabad (eight), Calicut (seven), Jaipur (four), Chennai and Port Blair (two each), and one each at Aizwal, Ahmedabad and Thiruvananthapuram airports.
 However, theft cases went down to 86 in the country last year.
 A total of 24 cases were reported at Delhi airport, 22 from Mumbai, Cochin (11), Hyderabad (nine), Jaipur and Kolkata (six each), Thiruvananthapuram (three), Agartala and Raipur (two each) and Indore (one).
 Thirty-two baggage theft cases have been reported up to March this year, with 11 from Delhi airport, Mumbai (nine), Cochin (five), Hyderabad (two) and one each from Bhuj, Kolkata and Madurai.
http://www.bernama.com.my/bernama/v7/wn/newsworld.php?id=945283
 

Abu Dhabi to invest Rs 27,000 crore in India

NEW DELHI: Abu Dhabi's commitment to invest Rs 27,000 crore in India may have proved to be the clincher for India agreeing to grant a massive increase in flying rights between the two countries. This commitment was made to top Indian ministers, who visited the oil rich emirate in recent weeks.
 Aviation minister Ajit Singh described the $379 investment by Etihad in Jet as a win-win for flyers. "It provides more competition and more connectivity and better efficiency. Competition is always good for any industry," Singh told reporters, while asking Air India to "look after themselves and gear up."
Etihad president and CEO James Hogan on Thursday said it expected strong growth from the Indian market. "From 42 million travellers last year, International Air Transport Association is predicting more than 100 million by 2016 — in just four years. Together, through a combination of codeshare services and direct flights, Etihad and Jet will connect 23 Indian cities to international services," the Hogan said in reply to a TOI questionnaire.
However, India is unlikely to see Etihad's Airbus A-380s to fly here. "Etihad will receive the first of 10 A-380s late in 2014. The routes these aircraft will fly are yet to be finalized, but the intention is to operate them on long-haul, high capacity routes. It is likely through code sharing (between the airlines) that Jet passengers will experience not only our A-380s when they enter service, but also our new Boeing 787 Dreamliners and other aircraft," Hogan said.
The Gulf carrier is looking at a major partnership with Jet as the latter plans to use Abu Dhabi as its biggest hub. "We will explore joint purchasing of supplies such as fuel, spare parts, equipment and catering supplies, as well as external services such as insurance and technology support," he said.
http://timesofindia.indiatimes.com/business/india-business/Abu-Dhabi-to-invest-Rs-27000-crore-in-India/articleshow/19734214.cms

Travel guide: Skyscanner to offer multi-modal fare checks

Travel research site Skyscanner, which entered the Indian market nearly a year ago, plans to offer price comparisons between flights, trains and buses by next year.
 Ewan Gray, Director-Asia Pacific, Skyscanner, said, “We are interested in offering comparisons between various forms of transport such as flights, buses and trains. We are in the research stage and may start offering these to Indian consumers by next year.” He said, at present, the company offers this service in Europe. The fact that there were nearly 15 million bus bookings in India last year, shows the potential the country offers for travel search, he added.
 Skyscanner already offers price comparisons between flights, hotels and car rentals in India.
The Web site earns fees from flights and hotel partners if a consumer does a booking based on its research. India is among its fastest-growing sites in terms of the number of hits it gets. Gray also claimed that the company had the largest number of Facebook followers in India.
He said nearly 60 per cent of its traffic in India came from mobile phones. Skyscanner is now focusing on strengthening its partnerships with Indian travel aggregators, airlines and hotels.
Aviation marketing saw challenges in 2012 in India and there is now less capacity and air fares are high, which means there are fewer deals being offered.
This makes us important for consumers looking for cheaper fares, he said
http://www.thehindubusinessline.com/todays-paper/tp-logistics/travel-guide-skyscanner-to-offer-multimodal-fare-checks/article4654863.ece
Operators not keen to start services before monsoon
THIRUVANANTHAPURAM: Kerala's seaplane project is progressing right on schedule, but seaplane operators say that they would prefer to wait out the monsoon before starting full-fledged operations.

Bharat Aviation director P Joseph Doss said he was ready with a Cessna 208 but would prefer to wait till September. "There is no point flying for two months and parking the aircraft for the next three. It is not economical. Also, as the pilots will be operating under visual flight rules, we don't want to compromise the safety of passengers, especially as we will be landing on water," he said.

Meanwhile, a senior tourism department official said four houseboats are being refitted to accommodate baggage screeners and safety equipment at Alappuzha. "We will be ready with houseboats by April 28. At the outset, seaplanes will operate from four locations - Ashtamudi, Punnamada, Kumarakom and Bekal. The Kochi shipping channel needs to be demarcated and a certain area cordoned off to include Bolgatty as a seaplane destination, which could take a while," he said.

Sandith Thandasherry, CEO of Navgathi Marine Design & Constructions that has been entrusted with designing the houseboats, said the boats would act as a security hold area. "Regular houseboats around 25-30 meters in length were found to be optimal. All boats are around six months to 1 year old, and some of them had life saving devices such as floodable protection keeping with the 2010 Kerala Inland Vessel Rules, but it will be a standard fixture. We've also redesigned the pontoon to improve handling. Partitions will be used to create separate spaces within the boat," he said.

The tourism official informed that prefabricated jetties were ready and would be floated as and when required. "Once the jetty and the houseboat is in place the airport security group will be pressed into service to guard the equipment," he said.
http://timesofindia.indiatimes.com/city/thiruvananthapuram/Operators-not-keen-to-start-services-before-monsoon/articleshow/19733718.cms
 

Airlines have to apply fresh for more flights to Abu Dhabi

New Delhi, April 25:  
Jet Airways, Air India, SpiceJet and IndiGo will have to submit fresh proposals to the Ministry of Civil Aviation seeking permission to operate more flights to Abu Dhabi.
The additional seats have become available with the Governments of India and Abu Dhabi agreeing late on Wednesday night to allow their airlines to operate 36,670 seats a week in the next three years. At present , airlines from both the sides are allowed to operate 13,600 seats a week.
 “Earlier the Ministry had sought to assess the initial demand from airlines and it was on this basis that the bilateral was concluded. Now, we will assess whether the airlines have enough aircraft, and their plans include flying from cities from which there is demand before making a final decision on allocation,” a senior official in the Ministry of Civil Aviation said.
 Before the Indian delegation left for Abu Dhabi, Jet Airways had sought its approval to operate 42,000 seats a week while Air India Express sought an additional 3,000 seats.
IndiGo and SpiceJet had sought permission to operate an additional 5,000 seats a week.
 In case the demand on a particular route outstrips the weekly seats allocated by the Ministry, then a decision will be taken after looking at the numbers of passengers and the distance that the various claimant airlines have flown in the domestic skies in the last three years.
India has also put a restriction on the number of daily flights and weekly seats that Abu Dhabi national carrier Etihad can operate to both Mumbai and Delhi from Abu Dhabi.
“Etihad can now operate 3,300 seats a week up from about 1,800 seats a week earlier, but it cannot operate more than two flights a day to these two metros. At smaller Indian airports there is a restriction on the number of seats that Etihad can operate a week but there is no restriction on how many flights a day they can operate,” an official said.
http://www.thehindubusinessline.com/todays-paper/tp-economy/airlines-have-to-apply-fresh-for-more-flights-to-abu-dhabi/article4654838.ece
 

Jet may have to offload 9.8% stake to public

After the mega deal with Etihad, the promoter group of Jet Airways is likely to offload 9.8 per cent of their stake to meet the SEBI’s minimum public shareholding norms of 25 per cent.
 According to Thursday’s closing price of Rs 635.20, this 9.8 per cent stake in Jet Airways will be valued at Rs 707.2 crore.
 The deadline to meet the minimum public shareholding norms is June this year.
Currently, promoter shareholding in Jet Airwa stands at 80 per cent. The preferential allotment to Etihad would result in an increase in the equity base of the company.
Subsequently, the shareholding of existing promoters would fall to 60.8 per cent.
This combined with its strategic partner Etihad’s stake of 24 per cent would take the promoter group holding to 84.8 per cent.
According to SEBI’s minimum public shareholding norms, the promoter group holding is capped at 75 per cent. This necessitates the offloading of 9.8 per cent stake by Jet Airways’ promoter group through either offer-for-sale (OFS) or through Institutional Placement Programme.
 The Jet Airways stock soared 10.69 per cent to close at Rs 635.20 on Thursday. It touched a 52-week high of Rs 688.60 in intra-day trade with a total traded quantity of 22.60 lakh against a two week average of 4.81 lakh. The Abu Dhabi-based carrier Etihad Airways picked up 24 per cent stake in the airline at Rs 754.74/share for Rs 2,050 crore. The acquisition price is at a 31.7 per cent premium to Jet Air’s closing share price on Tuesday. This is part of a $600-million commitment to strengthen the partnership between the two airlines. The current deal values Jet at around Rs 8,500 crore.
“The deal will have a positive impact on the stock. It might see a temporary correction after the closure of the OFS owing to the likely discount offered to shareholders under it. But eventually, the stock should bounce back owing to the twin benefit of the liquidity condition improving in Jet Airways owing to the cash inflow from the deal and well as owing to the cost-saving benefit owing to the long-term arrangement for seat sharing and international passenger traffic on certain routes,” said an equities analyst from Motilal Oswal Financial Services.
http://www.thehindubusinessline.com/todays-paper/tp-markets/jet-may-have-to-offload-98-stake-to-public/article4654891.ece