Is Jet heading the Kingfisher way? - Daily News & Analysis

The Jet-Etihad deal seems to be still stuck on the tarmac as all previous irritants are back to haunt it. So far, the Jet Airways management was under the impression that a take-off is on the cards as all hurdles have been cleared except the Sebi nod, which has sought clarifications on who will keep the ultimate control. There is no doubt that there was something fishy about the deal from the word go. It has been reported that Etihad was willing to play ball after the Indian government agreed to enhance seat entitlement for airlines of both countries to 50,000 from 13,300 a week. This single entitlement meant that the hub for Middle-East operations has shifted from Indian cities and Dubai to Abu Dhabi. All other Indian airline companies would have been affected by this decision, the worst being the government-owned Air India. On the very day the deal was signed between the two countries, Etihad announced that they are ready to acquire 24% in Jet Airways. The timing between the two events and the obvious benefits to Etihad have only reinforced a feeling that India had to sacrifice its interest to accommodate a stake sale in a private company. Government's own departments were ranged against such a deal, but the government keen to prove its 'pro-reform' credentials just went ahead. But curiously, the PMO office is now raising issues on which it had earlier granted clearance. MPs cutting across party lines had written to the PM against this one-sided deal and had requested quashing the same. This deal has once again exposed the style of functioning of the government, with the left hand not knowing what the right is doing. The Centre is now in an embarrassing situation where it loses a lot of face if it cancels the deal, and if it does not, it may have to brace for more sound and fury. As for Jet, if Etihad walks away, it could well be the next Kingfisher in the making. via Business - Google News http://news.google.com/news/url?sa=t&fd=R&usg=AFQjCNHutqWrKlvH_X7QNeI96P1aUTSObA&url=http://www.dnaindia.com/money/1856261/comment-is-jet-heading-the-kingfisher-way

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