Etihad Could Sell Jet Airways Investment by 2019
Joe Cortez March 05, 2018
Another airline investment of Etihad Airways could be coming to a close in 2019, according to predictions by CAPA-Centre for Aviation. The analysis firm predicts the Middle East carrier will sell its 24 percent stake in India’s Jet Airways by the third quarter of next year – an assertion both airlines are vehemently denying.
Etihad’s experiments in airline investments could be coming to an end, if a prediction by CAPA – Centre for Aviation comes true. India’s Economic Times reports that the Middle East carrier could divest their 24 percent stake in India’s Jet Airways by the end of 2019.
CAPA first predicted trouble between Etihad and Jet in January 2017, noting the number of partners opting to fly into other airports outside the carrier’s United Arab Emirates hub. The analysts noted that the airlines’ relationship hit hard times when Jet Airways opted to partner with Air France-KLM and Delta Air Lines, connecting to North America via Amsterdam Airport Schiphol (AMS) instead of Abu Dhabi International Airport (AUH). The aviation watch group predicts that could be enough for Etihad to eventually cut ties with their partner.
“CAPA research indicates that Etihad may divest its 24% stake in Jet Airways, possibly by Q3 of FY2019,” a tweet from the analyst’s India account wrote. “This could lead to a rationalization of capacity between India and the Gulf, particularly Abu Dhabi.”
In light of the speculation, both carriers report that a dissolution of their partnership is not happening anytime soon. Spokespersons for Jet Airways would not “comment on speculation” to the Indian newspaper, while Etihad firmly denied cutting their investment money out of the Indian airline.
“The claims made in the CAPA report are false,” an Etihad spokesperson told Economic Times. “Jet Airways is a valuable partner of Etihad Airways, and we have no plans to divest.”
Jet Airways is the final airline that advertises itself as a member of Etihad Airways Partners, a mini-alliance that has gone quiet since the collapse of Air Berlin. Although the two have been close in providing more flights to a growing Indian marketplace, other executives in the marketplace believe that Etihad will hold their investment for the time being to gain a competitive edge towards attracting Indian flyers.
[Photo: Shutterstock]
"May" "could" "might" Is this a story or a creative writing exercise?
CAPA first predicted trouble in January 2017. The article you linked to is 14 months old.