A tale of two deals

Indian aviation saw two deals,seven months after the government allowed foreign Airlines to pick up to 49% stake in Indian carriers in September

Published: April 25, 2013 1:48 am

Indian aviation saw two deals,seven months after the government allowed foreign Airlines to pick up to 49% stake in Indian carriers in September

Of the deals,first was announced by Air Asia,which is launching a new airline with the Tata Group

The second deal has been announced by Jet Airways on Wednesday,where they will sell 24% stake to Etihad

Given Below is a lowdown of the deals and an analysis of how they will change Indian aviation:

Jet-Etihad Deal

* Jet to sell 24% to Etihad for Rs 2,046 crore

* The deal will give Jet access to Etihad’s network; Etihad will get access to the Indian market

* Jet plans to connect 23 small cities like Lucknow,Varanasi,Patna to international destinations via Abu Dhabi on its own,or Etihad’s network

* Indian carriers,including Air India,may be hit as competing with the combined network of Jet and Etihad might pose a challenge

AirAsia-Tata Venture

* AirAsia to launch an Indian airline,where it would own 49%,Tatas would own 30% and the rest by Arun Bhatia of Telestra Trade Place Ltd

* The airline will be a low-cost carrier with its hub in Chennai and gradually expand

* For Indian carriers,it will mean further competition in a competitive and price-sensitive market

* The ones that will be badly hit will be the low-cost carriers who command 50% market share

For all the latest News Archive News, download Indian Express App

    Live Cricket Scores & Results