On February 5, 2014, CCI approved the proposed acquisition of 50.1% stake in Jet Privilege Private Limited (‘JPPL’) by Etihad Airways PJSC (‘Etihad’), pursuant to the hiving-off of Jet Airways (India) Limited’s (‘Jet’) loyalty business, into JPPL, on a going concern basis.

JPPL is a wholly owned subsidiary of Jet. Jet’s loyalty business would be transferred to JPPL by way of a slump sale agreement between the parties. Subsequently, Etihad will acquire 50.1% in JPPL. The proposed acquisition of the stake by Etihad in Jet would enable Etihad to operate the frequent flyer programme of Jet.

CCI observed that Jet and Etihad are already frequent flyer partners pursuant to their reciprocal Frequent Flyer Programmes Implementation Agreement dated June 10, 2008. Further, CCI had earlier approved Etihad’s acquisition of 24% stake (amongst certain other rights) in Jet.

In light of the above, CCI was of the view that the proposed combination is not likely to result in any Adverse Effect.

CCI member, Mr. Anurag Goel, passed a dissenting order as he was of the opinion that the combination raised an Adverse Effect. This was in line with his dissent in the earlier CCI order approving Etihad’s acquisition in Jet.

For further information, please contact:

Zia Mody, AZB & Partners
zia.mody@azbpartners.com

Abhijit Joshi, AZB & Partners 
abhijit.joshi@azbpartners.com

Shuva Mandal, AZB & Partners 
shuva.mandal@azbpartners.com

Samir Gandhi, AZB & Partners
samir.gandhi@azbpartners.com

Percy Billimoria, AZB & Partners 
percy.billimoria@azbpartners.com

Aditya Bhat, AZB & Partners 
aditya.bhat@azbpartners.com