NEW
DELHI: Indian market is fundamental to our business model, said James Hogan,
President and CEO of Etihad Airways on Wednesday. Speaking after Jet AirwaysBSE 12.76 % and Etihad announced their
deal, Hogan said the airline will invest $150 million in Jet's privilege
programme.
"The Indian market is fundamental to our business model of organic growth partnerships and equity investments. This deal will allow us to compete more effectively in one of the largest and fastest-growing markets in the world," Hogan said.
Stating that the deal will provide global growth opportunities to both the companies, Hogan added that it will bring immediate revenue growth. "The deal is expected to bring cost synergy opportunities," he added.
"Our initial estimates are of a contribution of several hundred million dollars for both airlines over the next five years," he said.
Hogan said, "We are pleased to have reached this significant stage in India with Jet Airways and are certain the partnership will bring significant benefits and opportunities for global growth to both airlines."
"We look forward to collaborating with Jet Airways and constructively working together with them and their stakeholders to build a sustainable, competitive and profitable airline," he said. The substantial ownership post the deal will remain with Indian nationals, Etihad said.
In a major Foreign Direct Investment ( FDI) move in the aviation sector, Jet Airways agreed to sell 27.3 million shares to Etihad Airways. Jet Airways will sell the shares at Rs 754.73 per share.
In an intimation to the stock exchanges Jet Airways announced that the Board of Directors of the company approved, subject to compliance with applicable laws and regulations and other necessary approvals, the issuance, by way of a preferential allotment 27.3 million equity shares (24% of Jet's equity) of the face value of Rs. 10/- (Rupees Ten only) to Etihad Airways PJSC at a price of not less than Rs. 754.7361607.
The approval of the shareholders for such issuance and allotment will be sought at an Extraordinary General Meeting to be held in this regard, Jet informed the stock exchanges.
The Board of Directors has granted approval for the Company and Etihad PJSC to enter into inter alia, the Investment Agreement in relation to such issuance and allotment and other documents incidental thereto.
http://economictimes.indiatimes.com/news/news-by-industry/transportation/airlines-/-aviation/Jet-Etihad-deal-to-bring-immediate-revenue-growth-James-Hogan-Etihad-Airways/articleshow/19713246.cms"The Indian market is fundamental to our business model of organic growth partnerships and equity investments. This deal will allow us to compete more effectively in one of the largest and fastest-growing markets in the world," Hogan said.
Stating that the deal will provide global growth opportunities to both the companies, Hogan added that it will bring immediate revenue growth. "The deal is expected to bring cost synergy opportunities," he added.
"Our initial estimates are of a contribution of several hundred million dollars for both airlines over the next five years," he said.
Hogan said, "We are pleased to have reached this significant stage in India with Jet Airways and are certain the partnership will bring significant benefits and opportunities for global growth to both airlines."
"We look forward to collaborating with Jet Airways and constructively working together with them and their stakeholders to build a sustainable, competitive and profitable airline," he said. The substantial ownership post the deal will remain with Indian nationals, Etihad said.
In a major Foreign Direct Investment ( FDI) move in the aviation sector, Jet Airways agreed to sell 27.3 million shares to Etihad Airways. Jet Airways will sell the shares at Rs 754.73 per share.
In an intimation to the stock exchanges Jet Airways announced that the Board of Directors of the company approved, subject to compliance with applicable laws and regulations and other necessary approvals, the issuance, by way of a preferential allotment 27.3 million equity shares (24% of Jet's equity) of the face value of Rs. 10/- (Rupees Ten only) to Etihad Airways PJSC at a price of not less than Rs. 754.7361607.
The approval of the shareholders for such issuance and allotment will be sought at an Extraordinary General Meeting to be held in this regard, Jet informed the stock exchanges.
The Board of Directors has granted approval for the Company and Etihad PJSC to enter into inter alia, the Investment Agreement in relation to such issuance and allotment and other documents incidental thereto.
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