Etihad Looks Into Two Indian airlines

 

 

Etihad Airways has looked at expansion for a long time and reported this week,  it has identified two Indian airlines as potential targets for investment. 

Etihad boss James Hogan wouldn’t be drawn on the names of the two airlines he’s been looking at, however all indications are going to be troubled Kingfisher Airlines who issued a statement saying it was in talks with the Gulf carrier. The other airlines could be its codeshare partner,  India’s Jet Airways. 

Etihad is keen to exploit India’s fast-growing aviation market after India opened the aviation sector to overseas investment for the first time in September of this year.   “We’re looking at a couple of opportunities in India,” Mr Hogan said in an interview in Abu Dhabi on Tuesday. “We’re going through the due diligence at the moment. If we believe we can meet the criteria, we’ll then discuss that with our board.”

If any deal is done, it would be a minority stake, “we don’t want to take over someone’s airline,” he added. Owned by Abu Dhabi’s oil-rich government, Etihad last year bought a 29.2 per cent stake in Air Berlin and has also expanded its global network through three other equity stakes including a 10 per cent holding in Virgin Australia, a 40 per cent stake in Air Seychelles and 2.987 per cent in Aer Lingus.

More woes at Kingfisher

Cash-strapped Kingfisher Airlines Ltd is seeing an exodus of people with at least 3,500 employees having resigned in the last one year, also reflected in falling employee costs in the April-June quarter.

The headcount is down to 4,200 from 7,700 a year ago, according to two executives of the Vijay Mallya-promoted airline. Both spoke on condition of anonymity.

“Out of the 4,200, 40% are not working as the airline closed at least 20 airport stations as part of downsizing its operations,” said one of the officials.

A Kingfisher Airlines spokesperson declined to comment.

Kingfisher cancels over 80 flights -

Kingfisher Airlines appears to be in deep trouble,  the airline had cancelled over 80 flights and faces a very uncertain future.  The Indian Directorate General of Civil Aviation (DGCA) has issued a show-cause notice to Kingfisher Airlines after the latter cancelled at least 80 flights over the past three days, saying it was taking some of its aircraft off flight schedules to add business class seats on them.