Minority Stake In Jet Airways Likely For Etihad
By Jens Flottau, Jay Menon
Source: Aviation Week & Space Technology
Similarly, Oneworld had agreed to take on Kingfisher Airlines, but that process was suspended well before the airline's grounding last fall. “Every time we believe we are close to something in India, something happens,” says Oneworld CEO Bruce Ashby.
Given Kingfisher's grounding and the difficulties Air India continues to face in its restructuring, Jet Airways has been the only viable candidate lately. And low-cost carrier business models are unlikely to lead to any meaningful alliance possibilities.
For Etihad, a Jet Airways investment would fit a pattern. The carrier has previously bought minority stakes in Virgin Australia, Air Seychelles, Air Berlin and Aer Lingus. Hogan says the group has become “the world's first equity alliance.” He claims the ties deliver “strong and growing revenue streams” that complement Etihad's own organic growth and provide cost synergies and value in joint procurement.