Etihad Airways PJSC’s investment in Jet Privilege Pvt. Ltd (JPPL), the frequent-flyer programme of Jet Airways (India) Ltd, an initial exploration has begun by The finance ministry’s Enforcement Directorate (ED) in the matter.
A revival of the carrier depends on securing investors to infuse funds. Lenders to the airline have called for bids from potential investors.The probe threatens to intensify woes for Jet Airways, which suspended services on 17 April amid a cash crunch and over $1 billion in debt.
The Etihad spokesperson said, “Etihad acquired its share in JPPL nearly six years ago in compliance with all regulatory requirements. Any queries relating to JPPL should be made directly to them.”
The official said, “ED is examining Etihad Airways’ investment in JPPL and whether there were any violations of FDI norms in the process.”
In addition to that the agency was also probing if Etihad secured the necessary approvals from the erstwhile Foreign Investment and Planning Board (FIPB) for making the investment. India abolished FIPB in May 2017.
