The snag is that Etihad has proposed to Jet to start flying from 6 more Indian cities over and above the existing 9 Indian cities they already operate from.
The Commercial Cooperation Agreement (CCA) that Jet and Etihad have filed together at the Foreign Investment Promotion Board (FIPB) brings to fore a major anomaly, reports CNBC-TV18’s Sumit Jha.
Also read: Move to re-locate Jet HQ raises worries about Etihad deal
When the bilateral pact was signed between India and United Arab Emirates (UAE), the Indian government refused to give any more ports of call. So, it is unlikely that the FIPB will clear this proposal on CCA until either the bilateral agreement between these two countries is changed or the CCA itself is amended.
This mean the FIPB will find it very hard to clear the agreement in its present form.
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Dont see mkt going anywhere now; like Bharat Forge: Dipen