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Chief Executive Officer of Etihad Airways James Hogan is coming to Mumbai on Friday. Confirming the development, sources said it was a personal visit.
Hogan’s visit comes a day after Jet Airways’ annual general meeting to announce its results, which is scheduled to be held in Mumbai on August 8.
Etihad acquired a 24 per cent stake in Jet Airways in April this year for over Rs 2,000 crore. Mumbai is also the headquarters of Jet Airways. The buyout was approved by the Foreign Investment Promotion Board after both the airlines made changes to the shareholders’ agreement to bring it in conformity with Indian laws.
Initially, market regulator Securities and Exchange Board of India and FIPB had raised questions about the deal, pointing out that even though Etihad was acquiring a 24 per cent stake, it had a majority of directors on the board of Jet Airways.
The Government also wanted Jet Airways to ensure that the place of doing business does not shift from India after the deal is concluded.
Jet and Etihad revised their shareholders’ agreement providing two seats on the board to the Etihad nominees and assured the Government that the place of business would remain in India, before the FIPB clearance was given.
ashwini.phadnis@thehindu.co.in
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