So far, the Jet Airways management was under the impression that a take-off is on the cards as all hurdles have been cleared except the Sebi nod, which has sought clarifications on who will keep the ultimate control.
It has been reported that Etihad was willing to play ball after the Indian government agreed to enhance seat entitlement for airlines of both countries to 50,000 from 13,300 a week.
This single entitlement meant that the hub for Middle-East operations has shifted from Indian cities and Dubai to Abu Dhabi. All other Indian airline companies would have been affected by this decision, the worst being the government-owned Air India.
On the very day the deal was signed between the two countries, Etihad announced that they are ready to acquire 24% in Jet Airways. The timing between the two events and the obvious benefits to Etihad have only reinforced a feeling that India had to sacrifice its interest to accommodate a stake sale in a private company.
As for Jet, if Etihad walks away, it could well be the next Kingfisher in the making.
03/07/13 Daily News & Analysis
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