Jet-Etihad to miss deal closure deadline

The Jet Airways-Etihad deal is likely  to miss its transaction closure deadline in the absence of  various regulatory approvals. In April the two airlines signed the deal under which Abu Dhabi based Etihad agreed to pick up 24% stake in Jet Airways.

The agreement has a clause called the ‘long stop date’  which stipulates that all regulatory approvals will be secured by July 31. The approvals are necessary for the conclusion of the transaction. While both the sides can extend the deadline,  the agreement also allows for termination of the deal if the conditions precedent (regulatory approvals) are not met.

The Rs 2060 crore deal and the allotment of additional traffic rights to Abu Dhabi  has turned controversial.  Opposition MPs and politicians including Janata Party chief Subramanian Swamy has demanded that additional traffic rights be scrapped and regulators are seeking a revision in the agreement  as it confers too many powers to Etihad.

Full report here Business Standard


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