Etihad tightens grip on India's loss-making Jet Airways

An Indian security official looks on as an aircraft of Jet Airways taxies after landing at Indira Gandhi International Airport in New Delhi The Indian aviation sector is opening up to foreign investment

Related Stories

The boss of Jet Airways, the loss-making Indian airline, has resigned, the company said.

The resignation of chief executive Nikos Kardassis was effective from 5 June, the company announced.

He has been replaced by chief operating officer Hameed Ali until a permanent replacement is found.

Jet did not give reasons for the resignation but observers believe new shareholder Etihad Airways has been keen to push through board changes.

The revamped board will comprise four Jet directors and three Etihad directors.

In April, United Arab Emirates-based Etihad bought a 24% stake in Jet, India's second-largest airline, in a deal worth $379m (£248m).

Jet has about a fifth of the Indian commercial aviation market but has been suffering from rising running costs of late and posted net losses of 4.96bn rupees (£55m) for the three months to March.

Etihad's deal was the first foreign investment in an Indian airline since the government eased foreign ownership restrictions in September 2012.

Foreign firms can now own up to 49% of domestic airlines, as India tries to free up its markets and attract inward investment.

Etihad has been expanding rapidly after taking stakes in a number of national airlines, including Air Seychelles, Air Berlin, Virgin Australia and Aer Lingus.

These partner airlines now contribute about 19% to Etihad's passenger revenues.

In February, Etihad reported a tripling of net profits to $42m for 2012, up from $14m in 2011.

More on This Story

Related Stories

The BBC is not responsible for the content of external Internet sites

More Business stories

RSS

Features & Analysis

From BBC Capital

Programmes

  • Evan Blass (known as evLeaks on Twitter)Click

    One of the world's top technology leakers - Evan Blass - explains how he gathers his secrets

BBC © 2014 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.