Abu Dhabi-based Etihad Airways has clarified it has no plan to sell its 24 percent stake in Jet Airways putting an end to speculations after aviation consultancy CAPA's report claimed the airline may sell its entire stake in Jet by Q3FY19, reported Business Standard.
In a statement, Etihad said, "The claims made in the CAPA report are false. Jet Airways is a valuable partner of Etihad Airways, and we have no plans to divest.”
The CAPA report was prepared for private circulation, and was not available on its website; however, the consultancy had tweeted:
CAPA research indicates that Etihad may divest its 24% stake in @jetairways, possibly by Q3 of FY2019. This could lead to a rationalisation of capacity between India and the Gulf, particularly Abu Dhabi. #indianaviation— CAPA India (@capa_india) March 1, 2018
CAPA did not share further details on the report.
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The Gulf airlines built up a global presence by stitching up alliances and picking up investments in airlines around the world including Jet Airways. It, however, reported failures in its two high profile investments — Alitalia and Air Berlin — after which it set out on a course correction strategy.
The airlines has also downsized its fleet. It has been phasing out its Boeing 777-200LRs, Airbus A330 freighters and Airbus A340 aircraft and also offering leave without pay to its pilots.
Experts believe a slowdown in the Gulf economies and decline in crude oil prices may be other factors that influence Etihad's growth plans.
Jet Airways and Etihad did not respond to an email query.
In September, Jet Airways Chairman Naresh Goyal had denied any plans of Etihad exiting the deal.
“We have no plans to sell the stake to another investor. Also, our partner Etihad has no intention to exit their investment in Jet Airways,” Goyal had told reporters on the sidelines of the annual general meeting.
In April 2013, the Abu Dhabi-based Etihad had invested Rs 20.69 billion in Jet for a 24 percent equity as part of a strategic alliance that would lead to a major expansion in their global network.
Etihad had also invested USD 150 million and picked up 50 percent stake in Jet's frequent flyer programme and carried out and purchase and leaseback of Jet's coveted slots at the Heathrow airport in London.
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