Flying in the face of discontent

When Etihad Airways announced in April it was picking up a stake in Jet Airways, it seemed like the long-delayed deal was finally ready to be signed, sealed and delivered.

But nearly three months later, the agreement has run into controversy again and the big question everybody is asking is: will Jet manage to cross all hurdles and get the $379-million investment the United Arab Emirates' (UAE) airline has offered for a 24 per cent equity stake?
Most market observers expect the deal to go through despite a torrent of objections. The agreement hit a snag after the Foreign Investment Promotion Board (FIPB) and stock market regulator SEBI raised questions about ownership and effective control of the Indian airline passing into foreign hands.
Media reports say Etihad plans to control Jet through a clutch of management committees populated by its nominees and shift Jet's offices as well as many back-end activities to Abu Dhabi. Etihad Airways declined comment on the issue: "We are engaged in the regulatory process and it would therefore be inappropriate for us to comment."
22/07/13 K.R. Balasubramanyam/Manisha Singhal/Business Today

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