Jet Airways likely moving global operations to Abu Dhabi

Dubai: Jet Airways is reportedly said to be moving a third of its international operations to Abu Dhabi, the hub of Etihad Airways as the equity deal talks between the two carriers continue.

The move comes as Etihad Airways is in the process of acquiring 24 per cent stake in the Indian carrier for over $300 million. But the deal has not come through yet and was recently reported to be deferred until August.

A small team from India is said to be currently visiting Abu Dhabi to discuss the bilateral rights between India and Abu Dhabi, Indian daily Livemint said in a report on Monday, quoting a senior civil aviation ministry official.

When asked for an update on the talks, a spokesperson at the Consulate General of India, Dubai, told Gulf News that the talks are “still ongoing at the moment”, and that any updates on its outcome are likely to be available on Wednesday.

Jet, which started using the Belgian capital as a hub in 2007 for its flights to North America, currently deploys around three to four per cent of its international capacity through Abu Dhabi.

“Jet Airways will certainly move one-third of international operations to Abu Dhabi as it is a natural hub that connects any part of the world with just one stop such as Dubai. But we will continue to connect various flights through Mumbai and Delhi. We will scale down operations in Brussels, but not close down the same as we would use it to connect North America,” a source was quoted as saying by Livemint.

According to reports in the Indian media, starting May 16, Jet Airways will connect Kuwait via Abu Dhabi from Kochi instead of through a direct flight. Quoting sources, the report states that the carrier will explore similar options such as flying to Najaf in Iraq, Cairo in Egypt, Beirut in Lebanon and Amman in Jordan — all via Abu Dhabi.

In the latest development, though, India’s civil aviation ministry has reportedly proposed an increase in bilateral flying rights between India and Abu Dhabi to over 53,000 weekly seats, four-fold higher from the present arrangement of 13,300 seats per week. However, the proposal has come under fire from other carriers.

Jet Airways alone is reportedly seeking the bulk — 41,600 additional weekly seats to Abu Dhabi over the next three years. It currently operates 4,285 seats [to Abu Dhabi]. Etihad, meanwhile, has been operating 62 flights to India and is utilising 11,380 seats.

According to aviation analyst, Kapil Kaul, CEO of South Asia at consultancy firm CAPA (Centre for Asia Pacific Aviation), raising the weekly quota will denote allowing Abu Dhabi more flights to India. “Abu Dhabi will also be entitled to 54,000 plus seats after the bilaterals, which might see more Etihad flights to Indian metros,” he was quoted as saying this by Livemint.

When quizzed on the deal’s progress, Etihad’s chief executive, James Hogan, recently told Gulf News: “There is never a time frame in business, talks are still in progress. When you’re dealing with governments and bilaterals, we are in the hands of others. What is important is that talks haven’t stopped. They are still in progress.”

Jet reportedly plans to connect 23 secondary Indian cities by Abu Dhabi to various international destinations including the US, Africa and the cities in the Gulf.

Amber Dubey, Partner and Head-Aviation at global consultancy KPMG, said that Jet-Etihad deal is likely to go through despite concerns and prove beneficial to both the carriers. “It would be a win-win for the airlines and passengers alike. Jet would get access to much funds, global network, latest technology and management best practices. Etihad in turn would get a stronger foothold in India which is a key market for Gulf carriers,” he told Gulf News.