Jet-Etihad Deal Positive for Industry: Experts

New Delhi: The sale of 24 percent stake in Jet Airways to the Abu Dhabi-based Etihad Airways for around 2,000 crore ($379 million) is a positive step for the aviation industry, experts watching the sector opined.

Experts say that the deal will bring revenue growth and cost savings for both the companies.

"Both companies are going to gain from this strategic deal. Jet will get more financial options and a reliable international partner, while Etihad will get a foothold in India," said Rajiv Chib, associate director, PricewaterhouseCoopers.

According to Chib, the deal also demonstrated the interest international passenger carriers are taking in Indian domestic airlines, as they see future growth in the sector.

"This (deal) shows that foreign airlines are interested, as they see future growth in this sector. I do expect another major deal in this area happening by the year-end," Chib said.

However, the deal, which also entails a $600 million commitment from Etihad Airways, still needs to be ratified at an extraordinary meeting of Jet's shareholders.

Sharan Lillaney, aviation analyst at broking firm Angel Broking, told IANS that the deal will bring in fresh funding opportunities for Jet Airways, which has an estimated debt of around 12,000 crore.

Passengers too are bound to benefit from the better connectivity options offered by the Jet-Etihad network.

"It is a very positive move. There were negotiations going on for a long time. It will provide Jet with much needed financing options and a major international partner. Passengers can look forward to using the networks of both airlines for international and domestic travel," Lillaney said.

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