The flag carrier of the United Arab Emirates (UAE), Etihad Airways, reached an agreement to raise its stake in India's international airliner Jet Airways to 49%, Indian television reported on Monday. At the moment, Etihad holds a 24% stake in Jet, and is looking to have more influence in the operations and management of what was once India's second-largest carrier. However, Indian regulations allow foreign airline companies to hold a maximum 49% stake in local carriers.
Etihad's move also means that Jet's founder and chairman, Naresh Goyal (pictured) would lose majority control of the company, which has not been able to make a profit in nine of the last eleven fiscal years. Goyal's stake would fall from 51% to as low as 20%, while his voting rights would be capped at 10%, the television reports claim.
