Gulf carrier Etihad Airways’ plan to buy a 24% stake in Jet Airways was billed as the harbinger of more such deals in the country’s troubled aviation sector. But in just over two months, much of the euphoria has frittered away.
A huge question mark now hangs over the deal after it has come under scrutiny from senior politicians such as Jaswant Singh and Subramanian Swamy. The Prime Minister’s Office (PMO), which issued a lengthy press release on Tuesday, has said there is no U-turn on the deal. But the PMO also said the deal is under examination. Earlier, the Foreign Investment Promotion Board had deferred a decision on June 14. All these developments are hardly surprising. Nor are they a bad thing. To start with, the deal created quite a flutter because of a curious coincidence.
Full report here Economic Times