Tie up between jet & etihad airways
Upcoming SlideShare
Loading in...5
×

Like this? Share it with your network

Share

Tie up between jet & etihad airways

  • 1,105 views
Uploaded on

PPT on the Jetihad Deal!

PPT on the Jetihad Deal!

More in: Business , Technology
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Be the first to comment
    Be the first to like this
No Downloads

Views

Total Views
1,105
On Slideshare
1,104
From Embeds
1
Number of Embeds
1

Actions

Shares
Downloads
77
Comments
0
Likes
0

Embeds 1

https://www.linkedin.com 1

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
    No notes for slide

Transcript

  • 1. TIE UP BETWEEN JETETIHAD AIRWAYS
  • 2. THE PRESENTERS: Bhavneet (47)  Sujatha (48)  Rajat Omar (49)  Mohit Banka (50)  Garima Bansal (51)  Nitish Bhardwaj (52)  Prashant (52)  Vinay Singhla (54) 
  • 3. MOHIT
  • 4. AVIATION INTRODUCTION Aviation as an infrastructure segment.  Aviation sector does not only provide air transport.  About one-third of world trade (by value) is delivered by air and about half of international tourism is facilitated by air links.  Civil aviation industry is an important engine for innovation and technological progress in a world of 
  • 5. INDIAN AVIATION INDUSTRY     1932: Mr. J.R.D.TATA flies a De Havilland Puss Moth from Karachi to Bombay as part of the first Tata Sons Ltd. flight to deliver mail carried by British Imperial Airways. 1948: Govt. of India acquires 49% stake in Tata Airlines, designates it a flag carrier and renames it “Air India International (AII)”. 1953: Tata Group sells majority stake in AII to the Government of India, nationalizing air transport. 1953: Indian Airlines formed by merging 8 former independent domestic airlines.
  • 6. MARKET SIZE    Total domestic passengers carried by the scheduled domestic airlines between January and April 2013 were 20.289 million, revealed the official statistics. No-frill carrier Indigo lead in terms of market share with 29.8 per cent of the pie, followed by Jet Airways-JetLite combine at 22.6 per cent, Spice Jet 19.6 per cent, Air India Domestic 19.2 and Go Air at 8.9 per cent for the January-April 2013 period. The air transport (including air freight) in India has attracted foreign direct investment (FDI) worth US$ 449.26 million from April 2000 to
  • 7. DOMESTIC AIRLINES           Air India GoAir Airlines IndiGo Airlines Jet Airways Jet Airways Konnect SpiceJet Airlines JetLite (Air Sahara) MDLR [Murli Dhar Lakh Ram (MDLR) Group] Airlines* Jagson Airline* Paramount Airways* *Small Privately Owned Airline(s)
  • 8. NAMRATA
  • 9. KEY DEVELOPMENT & INVESTMENT  Jet Airways is in talks with Abu Dhabibased Etihad Airways.  Jet Airways offering visa procurement services.  The Rajiv Gandhi International Airport in Hyderabad is set to commence „visa on arrival‟ facility.
  • 10. FDI IN AVIATION SECTOR So far foreign investors in aviation sector were allowed to invest up to 49% stake in domestic airline companies but the criteria for the investment was that the investor should not be related to the aviation sector.  However, now with relaxed FDI norms, foreign aviation companies are open for the investment in domestic Indian aviation companies with up to 49% stake 
  • 11. BENEFITS  It will provide the much needed cash flow to the domestic aviation companies.  It will bring in investments in aviation technology.  It will improve the flight operation, ground handling, evolved safety standards and overall better aviation experience.  Consumers will have wider choice.  International aviation companies will bring the best
  • 12. WHY NOT ALLOW FORIEGN AIRLNES TO FULLY OWN INDIAN CARRIERS? India does not have an open skies policy so it signs liberal Air Services Agreement (ASA).  If FDI by foreign airlines is allowed upto 74% many global airlines will want to set up subsidiary companies in India  Two investors-Ethiad of Abu dhabi and Air Asia of Malaysia would rethink their entire Indian stratergy. 
  • 13. BHAVNEET
  • 14. INTRODUCTION TO JET AIRWAYS
  • 15. JET AIRWAYS          Incorporated on April 1, 1992. Commenced operations on May 5, 1993. Granted scheduled airline status on January 4, 1995. 12 April 2007 Jet Airways bought Air Sahara for $340 million later renamed JetLite. Jetkonnect launched on May 8, 2009. Total number of aircrafts 98. March 2004: Began international operations with inaugural flight from Chennai to Colombo. Currently Operations: 50 Domestic destinations and 20 International destinations. On April 24, 2013, announced a 24% stake sale to Etihad at $379 million.
  • 16. CHAIRMAN’S PROFILE  MR.NARESH GOYAL
  • 17. MARKET SHARE
  • 18. SUJATA
  • 19. ETIHAD AIRWAYS
  • 20. SNAPSHOT
  • 21. ETIHAD AIRWAYS Set up by Royal (Amiri) Decree in July 2003.  Commercial operations in November 2003.  Etihad has a fleet of 66 aircraft serving 87 destinations in 55 countries.  Chairman - HH Sheikh Hamed bin Zayed Al Nahyan  Chief Operating Officer and President - James Hogan 
  • 22. CHAIRMAN HH Sheikh Hamed bin Zayed Al Nahyan
  • 23. NETWORK MAP
  • 24. RAJAT
  • 25. ETIHAD AIRWAYS JET AIRWAYS JET MALL ON GROUN D SERVIC E JET SPARK CARGO IN FLIGHT EXPERI ENCE CARGO SERVIC ES JET AIRWAS KONNE CT JET KIDS JET ESCAPE S JET MOBIL E DIAMO ND FIRST CLASS ETIHAD GUEST ETIHAD EXPRES S COACH SERVIC ES PEARL BUSINE SS CLASS CORAL ECONO MY CLASS SERVIC ES ETIHAD CHEUF FUER SERVIC ESS IN FLIGHT ENTERT AINME NT DUTY FREE PRODUCTS & SERVICES
  • 26. ETIHAD AIRWAYS JET AIRWAYS UNITE D AIRLIN ES AMERI CAN AIRLIN E SAFI AIRWA YS ETIHA D ALITA LIA QANT AS AIR FRANC E CODES HARE JET KONN ECT AIR CANA DA ALL NIPPO N AIR ASTAN A BRUSE LLS AIRLI NE CODES HARE THALY S AIRBE RLIN EMIRA TESSO UTH AFRIC AN AIRLIN E AIR LINGU S ALITA LIA AIR SEYCH ELLES ANA AIR MALT A CODESHARE PARTNERS
  • 27. JET AND ETIHAD AIRWAYS
  • 28. JET AIRWAYS-ETIHAD STRATEGIC ALLIANCE Strategic alliance with Etihad Airways of the United Arab Emirates.  The injection of US$750 million covering up to 24% of Jet Airways‟ Share Capital & other parts through bonds & equity.  Expansion of existing operations and introduction of new routes between India and Abu Dhabi.  Conviniene to customers. 
  • 29. VINAY
  • 30. WHAT LED TO THE DEAL? INDIA – UAE Bilateral Agreement (Aviation) Agreement Validity – 3 yrs.  Indian population in the Gulf region Saudi Arabia, UAE and their neighbors. 51.97% of Gulf populations is Indian.  More seats allocation to the Indians in India-Gulf Route.  Lower Fares and Special Offers to Frequent Flyers.  Allow designated airlines of each side to have the 
  • 31. BENEFITS TO BE DERIVED Jet Airways Etihad The deal is life saver for Jet, with a huge debt of Rs.13,282 crore in the fiscal ended March, 2012. It will not only get USD 750 million but will have access to cheap loans @3% from Abu Dhabi To push the deal through, the Indian Govt. agreed (by way of bilateral agreement with UAE) to give Etihad permission to fly to 11 more cities in India in addition to 9 it already lands. Jet‟s consolidated Net Debt-Equity=97 times. The equity infusion will allow Jet to pay down the debt & will lead t its DebtEquity falling to 4.3 times. It will result in int. Saving of Rs.190-200 crore per year. Etihad may cannibalise the traffic share of Indian airlines by flying passengers to various parts of the world through its hub airport in Abu Dhabi. Key cost benefits and synergies in fleet acquisitions, maintenance, joint purchasing opportunities for fuel, spare parts and insurance and technology support will come through. Other areas of cooperation Much needed entrance in Indian market with the potential market and steady growth. Also the number of seats to be increase three times between India & UAE.
  • 32. NITISH
  • 33. SYNERGIES TO BE DERIVED
  • 34. FACTS & FIGURES
  • 35. MAJOR CONCERN OF SEBI & FIPB  Consent of 3/4th of members majority for decision.  The agreement has unilateral right and can be terminated by Etihad any time.  The jet airways headquarters will be shifted to Abu Dhabi.  Tax Evasive Measure.
  • 36. PRASHANT
  • 37. IMPACT ON ECONOMY,STOCK MARKET & VARIOUS OTHER AREAS  Indians working in U.A.E  Lead to the growth of Aviation Sector.  Generation of employment.  Will push the stock of all the airlines upward.  It would ease the pressure of high current account deficit in long run.
  • 38. TAKE-OFF TROUBLES  April 24 Jet and Etihad sign strategic alliance. The latter agrees to buy a 24% stake in the former for about Rs 2,060 crore  May 24 Jet shareholders approve stake sale. The airline defers resolution to amend the company‟s articles of association  May 27 The two airlines amend shareholder agreement to address shareholder and Sebi concerns on „control‟ and „ownership‟  May 29 & 31 Subramanian Swamy and Jaswant Singh write to the PM against the deal  June 13 PMO writes to the civil aviation ministry to redraft the Cabinet note on Abu Dhabi traffic rights  June 14 Foreign Investment Promotion Board defers approval to Jet-Etihad alliance  July 2 PMO defends the Abu Dhabi bilaterals and says there‟s no division within the government on the issue
  • 39. SOLUTIONS       BoD Composition: 2 Directors for Etihad with Jets 5 and 7 Independent Directors of Indian origin. Audit Committee member reduced to 1 for Etihad. Board Decisions to be taken on 2/3rd majority rather than 3/4th as first drafted. No change in the Shareholding pattern. Etihad acquire 24% stake leaving 51% with Goyal and remaining 25% with others, including institutions and individuals. Goyal will be designated as the First Chairman of the airline after Etihad's investment is approved by the Indian Authorities. Etihad has agreed not to act in concert with Naresh Goyal, while taking decisions.
  • 40. Thank You….!