Post Etihad deal, Jet may shift global base to Abu Dhabi

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"First, all this is speculation because there is no official word on this but I do see a deep and comprehensive alliance as a first step. In the near term, I see the possibility of jet delisting once Etihad stake goes above 26 per cent," said Kapil Kaul, CEO-South Asia for Centre for Asia Pacific Aviation, an aviation think tank.

The deal between the two, however, will only be complete when Jet Airways takes necessary permissions from the home ministry and the Foreign Investment Promotion Board (FIPB).

This deal would require Naresh Goyal to first transfer shareholding in Tail Winds, which is registered in Isle of Mann, to himself. Goyal, who is an NRI, holds shares of Jet through Tail Winds that is registered outside the country.

According to the guidelines for foreign carriers wanting to invest in Indian airlines, the new entity will initially have to seek approval from the FIPB. It will also need to ensure that the CEO is Indian, board is majority Indian and the joint venture company is registered in India.

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