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TIE- UP BETWEEN

JET- ETIHAD AIRWAYS

Presented by-

Jyoti PatawariKimberly Rodrigues

Rahul Runout

Swati Sharma

Shaifali Pal

Sahil Kakwani

Raghav Maheshwari

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INTRODUCTION

Jet Airways-

Second largest airline in India.

Based in Mumbai.

51% owned by Naresh Goyal (founder and chairman).

Etihad Airways- Second largest air carrier of UAE.

Etihad means union.

One of worlds leading airlines.

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HISTORY OF JET AND ETIHAD

In 2003, Etihad took tips from Naresh Goyal.

10 years later, Jet has been forced to Approach deep

pocketed Etihad.

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JET AIRWAYS- JOY OF FLYING

Incorporated on April 1, 1992.

Commenced operations on May 5, 1993.

Granted scheduled airline status on January 4, 1995.

Subsidiaries of Jet:

JetLite: On 12 April 2007 Jet Airways bought Air Sahara

$340 million. It was renamed JetLite.

Jetkonnect: Low-cost brand of Jet Airways, launched onMay 8, 2009.

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Total number of aircrafts 98. Began international operations in March 2004 with

inaugural flight from Chennai to Colombo.

Currently serves 50 domestic destinations and 20

international destinations.

Current market standing:

Revenue: $3 billion

Profit: -$14.20 million

On April 24, 2013, announced a 24% stake sale to Etihad at$379 million.

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ETIHAD AIRWAYS-

FROM ABU DHABI TO THE WORLD

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INDIA- UAE

BILATERAL AGREEMENT

An agreement formed by an exchange of a promise inwhich the promise of one party is in consideration

supporting the promise of the other party.

Etihad to pick up 24% in Jet Airways for $379 million.

Signed by the two airlines in April and modified in May.

Key changes ensured that Ethiad does not have unilateral

right to terminate the commercial cooperation agreement.

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The nomination committee will include one

person nominated each by Jet and Etihad and three

other board members will be chosen throughconsensus.

Etihad is regarded as an ordinary publicshareholder.

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THE JETIHAD DEAL

Etihad to buy 24% equity stake in Jet Airways.

Deal value- $379 million.

27.26 million shares of Jet to be allotted at Rs. 754.74 per

share.

Allotment to be done through preferential allotment.

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Exchange of third county and domestic codeshare facility.

Allocation of additional 36,670 weekly seats.

Allocation to take place over a period of 3 years.

- 11,000 weekly seats in 2013.

- 12,800 weekly seats till 2014 winter.

- 12,870 weekly seats till 2015 winter.

Change of gauge facility made available to bothcountries.

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EFFECTS OF THE DEAL

National Loss

Control of foreign carriers in India.

Emirates Position inIndian Market will be eroded.

Fall in prices charged by airlines.

Air Traffic Control System will be affected.

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OPPOSITION

Rechecking of the deal by:- Securities and Exchange Board of India (S.E.B.I.)

Foreign Investment Promotion Board (F.I.P.B.)

Department opposing Agreement

C.B.I. enquiry demanded

Investors Board Meeting Surprise Statement

Proposal or A Set Of Plan for Future