Experts say Etihad will exercise control over Jet Airways

Mumbai: Gulf-based Etihad Airways, which is in the process of acquiring a 24 per cent stake in Jet Airways (India) Ltd, will hold influence and control over the Indian carrier despite modifications to the  shareholder and commercial pacts signed between them, corporate governance and aviation experts say.

The government cleared the decks for the Rs 2,060-crore investment by Etihad and the Foreign Investment Promotion Board (FIPB) gave a conditional nod to the deal on Monday. This was done after the two airlines watered down contentious clauses regarding control and management. However, some experts feel not enough has been done.
J N Gupta, former executive director of the Securities and Exchange Board of India (Sebi) and founder of SES, a proxy advisory firm, said; “The deal may appear compliant in letter and on paper. However, it will only be known in future what kind of control Etihad continues to exercise over Jet.”
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