The competition watchdog has approved Etihad Airways' investment in Jet , marking the final clearance to the first-ever investment by a foreign airline in an Indian carrier.
The government had last year allowed foreign airlines to buy up to 49 per cent in Indian airlines.
Abu Dhabi-based Etihad will acquire 24 per cent stake in Jet Airways for $600 million that also includes a soft loan following the CCI clearance. "The Commission approves the deal under sub-section (1) of Section 31 of the Act," says the order released late Tuesday evening.
Five members including chairman Ashok Chawla voted to clear the deal. One member, Anurag Goel, voted no on the ground that competition will be hit.
The approval is because of the commission's finding that the Jet-Etihad combination is not likely to significantly competition.
The 23-page order argues that after the controversial revision in the Bilateral Air-Services Agreement (BASA) between India and United Arab Emirates (UAE) would not significantly impact competition.
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