Jet Airways has moved a step closer to selling a stake to Etihad Airways with the Competition Commission of India giving its much-awaited clearance to the deal.
In an order issued late on Tuesday, the Commission said it is of the opinion that the proposed combination is not likely to have appreciable adverse effect on competition in India. The CCI said Etihad was not operating in Indian domestic air transportation services — that is, offering services between two airports in India. Therefore, the proposed combination is not likely to raise any competition concern in the sector. The deal will now have to be cleared by the Ministry of Civil Aviation before it can sail through.
The Securities and Exchange Board of India and the Cabinet Committee on Economic Affairs have already cleared the deal.
In April, Jet Airways and Etihad signed an agreement whereby Etihad will invest about $600 million in different forms in the Indian carrier. This includes $70 million through the sale and lease back of three slots at Heathrow, $380 million for 24 per cent equity stake in Jet Airways and $150 million in the Jet frequent flyer programme.