CCI approved Etihad Airways purchase of 50.1% stake in JPPL
CCI gave its nod to Etihad Airways for purchase of 50.1% stake in JPPL.
Competition Commission of India (CCI) approved Abu Dhabi-based Etihad Airways proposal of purchase of 50.1% stake in Jet Privilege Private Ltd (JPPL) on 6 February 2014. JPPL is a customer loyalty programme unit of Jet Airways.
CCI headed by Chairman Ashok Chawla in its majority decision ruled in favour of the Etihad Airways. It said that the transaction was unlikely to have any adverse impact on market competition. This is because CCI had already approved the Etihad's purchase of 24 per cent stake in Naresh Goyal-led Jet Airways and the two carriers were already partners in their respective frequent flyer programmes.
The Slump Sale Agreement and Commercial Agreement were signed between Etihad Airways and JPPL on 19 November 2013. Under the deal, Etihad was to acquire 50.1 per cent stake in JPPL subsequent to the hiving off of Jet's loyalty business into the subsidiary on a going concern basis.
However, valuation of the deal has not been disclosed.