The agreed stake sale to Etihad by Jet Airways (India) was deferred by the Indian government. This was after authorities seek more information about the local carrier's ownership.
After the country's Foreign Investment Promotion Board discussion in New Delhi today, Economic Affairs Secretary, Arvind Mayaram stated that the government needs more details of effective control and ownership of said company. India's Stock Market regulators raised some concerns about the deal and asked the companies to rectify some provisions of their agreement. No further information was disclosed by the official.
Jet Airways is seeking to sell 24% stake to Etihad Airways. The net proceeds of the stake sale will be used for the fleet's expansion and to pay debts after six years of losses. The losses incurred were caused by high fuel costs and price war.
A new CEO was also named today by the Mumbai based airline as it prepares to face rising competition in the aviation industry.
Ragina Chopra, spokesperson for Jet refused to give comment regarding the deferred agreement.
Join the Conversation