Etihad to appoint three directors on Jet airways
30 April 2013
Etihad Airways will have the right to appoint three directors on the board of Jet Airways (India) Ltd, India's second largest airline by passengers carried.
Currently Jet Airways has seven directors on its board.
On 24 April Etihad Airways agreed to buy a 24-per cent stake in Jet Airways for $379 million, clearing the decks for the Mumbai-based airline to become the first beneficiary of a policy change that allowed foreign airlines to invest in domestic carriers (See: Etihad Airways to buy 24% in Jet Airways for Rs2,061 crore).
According to a BSE Ltd filing, an extraordinary general meeting would be convened by Jet Airways on 24 May to allot preferential equity shares to Etihad Airways and adopt a new set of articles of association.
Additionally, Jet Airways and Etihad intended to set up an integrated alliance between themselves by way of a commercial cooperation agreement in order to enhance their respective businesses, pro?tability and competiveness by cooperating with each other in a number of areas and through a number of joint initiatives, the BSE was informed by the airline.