Etihad raises concerns over political issues over Jet deal

Abu Dhabi-based Etihad has raised concerns over political issues that is delaying its functioning in Indian after taking over 24 percent stake in Jet Airways, reports Kritika Saxena of CNBC-TV18.

Etihad executives are likely to meet government officials and are open to any queries regarding the deal along with Jet Airways management representatives.

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Jet-Etihad joint team cannot be finalised till bureaucracy related issues are sorted out. Jet Air and Etihad got into an over Rs 2,000 crore deal and since then various ministries and politicians have opposed the transaction on the government’s decision to allow over 36,000 seats on Indian flights to Abu Dhabi. The Foreign Investment Promotion Board (FIPB) has also put clearing of the deal on the backburner.

Meanwhile, Jet--Etihad are to begin work on joint management team and are looking into strategies of both companies. However, both firms cannot finalise joint team until issues are sorted at political level.

Jet-Etihad also needs to clarify on ownership of Jet Privilege, a 100 percent subsidiary of Jet Air.