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Etihad-Jet alliance will create a win-win situation

WAM Abu Dhabi, Apr 27th, 2013 (WAM)–Etihad Airways’ acquisition of a 24 per cent stake in India’s largest private carrier, Jet Airways, for Dh1.4 billion will create a win-win situation for both the airlines. It will also help India’s 42 million-strong travel and tourism industry, which has a huge potential to grow further.

The Etihad-Jet alliance will bring significant passenger benefits, creating a combined network of 140 destinations. While international passengers will gain easy access to a larger network of Indian cities, Indian travellers will also find a strong international gateway through Abu Dhabi a growing tourism and business hub.

“Aviation is a great enabler and strong tool for economic growth and UAE carriers have already demonstrated that. Now they are exporting their expertise to help other economies”, opines English language local daily, Gulf News, in its editorial on Saturday.

It noted, this is Etihad Airways’ fifth international acquisition in 16 months since it became profitable in 2011. With each alliance, the UAE national carrier has provided its partners with increased passenger traffic and helped maximise their seat inventories, thus helping them strengthen their bottom line. “These alliances have also helped Etihad extend profitability as witnessed in its last annual report.” The paper underlined that the move is also a good example of how successful UAE entities can help large Indian organisations and thus contribute to the Indian economy, while benefitting from the growing opportunities at the same time. Further liberalisation of the Indian economy can also unlock increased economic opportunities.

“These moves will also further help cement bilateral relations between the UAE and India two major economies in the region”, it concludes.

WAM/MN