Unadulterated truth about the Jet-Etihad deal & National Security implications

[Mritunjaya]

Request all Indians to view the video in Full to understand how Indian National security is compromised and how corruption is white washed to look like a FDI boon.

The video is jarring but it is worthwhile to hear the whole video if you really want to understand how the whole deal went down. The best part is this truth is not adulterated by Media houses with agenda.

Investigation and exposure by a legendary son of India.

There is a part 2 where he takes question and answers too.

 

[Mritunjaya]

How the congress slowly Sells India .......

India Regulator Approves Jet-Etihad Deal - WSJ.com

India's antitrust regulator Tuesday approved Jet Airways (India) Ltd. plan to sell a 24% stake to Abu Dhabi-based Etihad Airways, moving the first investment by a foreign airline in an Indian carrier closer to completion.

The approval from the Competition Commission of India followed the Oct. 3 approval by an India cabinet of ministers of the about 20 billion rupees ($312 million) deal. The regulator's mandate was to examine whether the deal would result in Etihad getting substantial control of Jet despite holding a minority stake, and the impact of the alliance on other airlines operating in India, especially the flag carrier, Air India Ltd.

The regulator also had to study whether the deal would strengthen Jet's position in India so much that it hurt other carriers.

"The Commission is of the opinion that the proposed combination is not likely to have appreciable adverse effect on competition in India," the regulator said in its order.

Jet—controlled by Indian businessman Naresh Goyal—in April announced its plan to partner Etihad. The Mumbai-based carrier said a cash infusion by Etihad would help Jet reduce debt and cut costs by allowing joint purchasing of jet fuel, aircraft orders, training of crew and aircraft maintenance.

The proposed sale followed the India government's decision in September 2012 to permit foreign carriers to own as much as 49% of Indian carriers. Until then, foreign carriers were barred from investing in Indian airlines.

The Competition Commission said Air India had expressed its concerns about the "impact of the alliance on the competitive landscape of the India-Abu Dhabi route and impact of the alliance on Indian aviation and Air India."

The Jet-Etihad deal had already been delayed for close to seven months amid concerns from Indian regulators that Etihad would use its minority stake to gain control of Jet.

The companies then changed the terms of the deal and reduced the number of board members representing Etihad. In July, India's Foreign Investment Promotion Board, which vets investment proposals of foreign companies, approved the deal with some conditions.

Previously, a senior Finance Ministry official had said some of the conditions were to ensure that the effective control of Jet remained with founder Naresh Goyal, an Indian by nationality.

The deal must now be approved by the civil aviation ministry.

 

[Mritunjaya]

How ONE MAN can make a difference ..........

Subramanian Swamy puts spanner in Jet-Etihad deal; will it now get delayed? | Firstpost

......In his petition, filed in the Supreme Court yesterday, the BJP Member of Parliament has also sought CBI probe “to determine if there was any abuse of power by any public servant to obtain any pecuniary advantage or valuable thing for the benefit” from either Jet Airways or Etihad Airways for getting the bilateral okayed. He wants the court to revoke the bilateral pact reached between India and Abu Dhabi. The petition is yet to be heard. It is evident that Swamy has alleged large-scale corruption in the ASA which has now been cleared by the Union Cabinet. It allows airlines of both countries to offer almost 50,000 seats a week by 2015, up from 13,300 at present.

The bilateral has already got all required clearances and the equity deal is in its final stages of completion. In fact, Jet has begun to see resignation of some of its key executives as Etihad prepares to bring its own men to steer the Indian airline. On Sunday, Chairman Naresh Goyal’s wife Anita moved out of an executive role to an advisory one, signalling that things are already being controlled from Abu Dhabi. So Swamy’s petition could make things quite tough for the airline, which is already in massive transitory phase. In his petition, Swamy has made Ministries of Civil Aviation, External Affairs, Commerce and Finance as respondents.

The Foreign Investment Promotion Board, Department of Industrial Policy and Promotion, aviation regulator DGCA and the two airlines involved in the equity deal are also respondents to his petition. He has also given Etihad’s expected gains from the equity deal and bilateral enhancement: Swamy says Etihad stands to derive benefits worth almost Rs 10,000 crore every year through its equity deal with Jet. In the same petition, he has also alleged that “as a consequence of the very same bilateral/ MoU dated 24.04.2013 a reasonable estimate of losses that would be incurred by the Indian national carrier – Air India would be about Rs 2,555 crore per annum and the losses estimated by other domestic airlines would be about Rs 773 crores per annum.” In fact, Swamy says not only did Etihad get a largesse in the form of “unprecedented increase in capacity entitlement for itself i.e. up to 50,000 seats per week, as well as third country and domestic code sharing but by investing into the Indian carrier and entering into inter-se arrangements evidencing effective control over Jet Airways, it managed to get surrogate control and reap the rewards from the Jet Airways’ share of the Indian bilateral, thereby effectively getting approximately 90,000 seats per week to and from India in contrast to the genuine entitlement of merely 13,300 seats.”

The points Swamy has made in his petition have been made by him publicly earlier and some other MPs have also smelt large-scale corruption in the undue haste with which the Ministry of Civil Aviation signed the amended ASA with Abu Dhabi. A Parliamentary Standing Committee has raised the matter of how this bilateral pact will kill Air India – but no questions have been asked of the Ministries of Civil Aviation, Finance, Commerce or External Affairs on this matter.