The Jet-Etihad deal is done but in its making, it was a roller-coaster ride for all parties.

Though the deal was between two private entities, it required assurances from senior Indian Government functionaries that its investment in Jet Airways through Etihad would not meet the fate of Etisalat. The Abu Dhabi-based Etisalat had invested Rs 3,000- 4,000 crore in the telecom sector here before it was forced to exit in 2012.

People connected with the Jet-Etihad deal told Business Line that the two partners were ready to sign the deal last November, hardly 60 days after the Union Cabinet allowed foreign airlines to acquire up to 49 per cent in domestic carriers. But the Abu Dhabi Government wanted to be absolutely sure that its over-Rs 2,000 crore investment in Jet would be secure.

To ensure that New Delhi was serious about foreign direct investment in the civil aviation sector, a high-power team from Abu Dhabi, which included James Hogan, Chief Executive Officer of Etihad, Ahmed Ali-al-Sayegh, Board Member, and others met the Ministers of Finance, Commerce, Home and Civil Aviation in Delhi.

A perfect opportunity to firm up the deal came when Commerce and Industry Minister Anand Sharma visited Abu Dhabi in February, seeking investments. His trip came just days after the Etihad team visited India.

Everything was set. But at the meeting between Sharma and Sheikh Zayed al-Nahayan, Managing Director of the sovereign wealth fund of Abu Dhabi Investment Authority, the issue of investment in Etisalat was raised.

There was also the issue of bruised egos in the Ministry of Civil Aviation in case Sharma took credit for finalising the Jet-Etihad deal.

To get over this hurdle, it was decided that after the deal was signed in Abu Dhabi, the top brass of the two airlines would travel to India for joint media interactions in Delhi and Mumbai. Venues at luxury hotels were booked, but cancelled later.

The deal got a fresh lease of life when news came that Prime Minister Manmohan Singh would visit the UAE. His visit was seen as the perfect context for signing the deal. The visit, which was never officially announced, was eventually deferred.

Worried at the negative fallout of these developments, the Government sent External Affairs Minister Salman Khurshid to Abu Dhabi in May to assure the West Asian nation that the Bilateral Investment Protection Agreement (BIPA) was being fast-tracked.

Only then did Etihad agree to sign the deal and bring to an end the six-month-long delay in the tie-up.

> ashwini.phadnis@thehindu.co.in

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