JET-ETIHAD DEAL APPROVED BY AIR INDIA FOR NATIONAL INTEREST
One of India’s leading aviation industries, Air India has drawn light on the aspect of its global connectivity and national economy during the time of Jet-Etihad deal approval. This information was provided by the Lok Sabha on Monday 11th August ’14.
GM Siddeshwara, Minister of State for Civil Aviation, stated that the importance of national aviation industry should be kept aside due to the traffic rights indexed to other airlines. This will be done only after diagnosing the operational necessities of Air India. Also, the concerns of various stake holders, Air India being one, will be considered at appropriate platforms.
Along with the concerns mentioned above, there is a constant need for keeping the passenger’s interest in mind. Enhanced connectivity is needed for overseas travelling and economic interests of India. Governments of India and UAE agreed to sign up for an MoU to improve the air traffic functioning.
Earlier, in October 2013 an Indian private carrier gave 24% of its equity shares in the hands of Etihad Airways. This transfer was approved by FIPB, which also granted 3 combinations with foreign airlines that were Jet with Etihad, Air India with Asia India and Tata with SIA.
The Tata-SIA joint venture proposal publically stated the brand name of its venture on Monday to be Vistara. It will be used for a 5 years’ time for domestic flights. Siddeshwara also commented that there are in total of 93 airports that are involved in loss-making and the revised decision will help reduce the losses.