The manner in which Abu Dhabi seems to be getting away with a sharp increase in seat sharing arrangement has got other countries in the Middle East interested. Despite an outcry on the way Abu Dhabi managed to increase its seat sharing arrangement with India using Etihad’s investment in Jet Airways as a vehicle, the deal seems to be moving ahead.Government seems too keen to bend the rules in order to bring in foreign direct investment (FDI), irrespective of the damage it does to other Indian players.
Other countries now seem keen in using the same strategy to increase seat sharing arrangement. Picking up stake in loss making airline companies is only incidental. Spice Jet traded 8% higher on Monday on news that Kuwait Airlines is keen on picking up nearly 25% stake in the company. Though there was a denial issued by the company, share price remained high.
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