Etihad CEO James Hogan calls Jet investment a bet on India market

MIAMI: Etihad Airways’ stake purchase in Jet Airways should be seen as an investment in the Indian market and not in the airline per se, the Abu Dhabi-based carrier’s chief executive said. James Hogan was speaking at a panel discussion at the 71st annual general meeting of the International Air Transport Association here on Monday evening.

Through the stake purchase, Etihad is eyeing India’s growing market for outbound travel, as the airline tries to expand its network and better compete with regional rivals. “For us we are the smallest of the three Gulf carriers and remain the smallest of the three Gulf carriers,” Hogan said. Etihad acquired 24% in Jet for about Rs 2,000 crore. The deal followed a three-time increase in bilateral seat entitlements between India and Abu Dhabi.

Since the agreement was concluded, Etihad increased frequency of flights it operates to India. Jet has also started operations from 10 new cities in India to Abu Dhabi. In March this year, Jet Airways was given permission to start dedicated freighter services using two aircraft leased from Etihad. The freighter plan, however, has temporarily been shelved.

(This correspondent is in Miami at the invitation of the IATA).