Etihad, Jet Airways are still together, say airlines

Abu Dhabi - "Reports circulating about the relationship between Etihad Airways and Jet Airways are absolutely unfounded and baseless," said a spokesman of Etihad Airways.

Abu Dhabi-based Etihad Airways and India's Jet Airways have termed news reports questioning their three years old tie-up as "unfounded".

"Reports circulating about the relationship between Etihad Airways and Jet Airways are absolutely unfounded and baseless," said a spokesman of Etihad Airways, when approached by Khaleej Times.

"Both airlines continue to enjoy a strong, healthy relationship since the forging of the partnership three years ago. Anything to the contrary is completely false, and reports of such are misguided and misinformed," said a joint statement.

In an article, India's leading newspaper Economic Times reported on Sunday that the top executives appointed by Etihad Airways had left the Mumbai-based airline. The UAE's national carrier had appointed its management after it bought a 24 per cent stake for $379 million three years ago. With their departure, the management control at the airline is back into the hands of Naresh Goyal, whose appointed management team is now running the airlines.

"Etihad Airways entered in?to a strategic tie-up with Jet Airways to be part of one of the world's biggest economies. It is a long-term commitment to work together to provide the travelling public to and from India with greater choice and more travel options," the joint statement said.

The two airlines benefit from each other's networks and management skill sets. Sharing resources for the short, medium, and long-term, has always been part of the agreement, it further said.

"It was also planned for Etihad to provide support with personnel or executives until Jet Airways was able to source appropriately qualified people. Neither airline has moved away from this philosophy," the statement added.

Etihad Airways has representation on the Jet Airways' Board of Directors, and all decisions made at board level are made collectively, the statement added.

Jet Airways termed the movement of Etihad officials in the normal course of things as the teams were formed to work on a host of initiatives and many of these have been implemented, resulting in improved operating and financial performance of Jet Airways.

"Additionally, Jet Airways has also strengthened its own management capability and respective team members have since returned to their earlier roles or newer assignments," the Jet Airways added in the statement to ET. The airline said it continues "to work on identifying new initiatives and opportunities with cross functional teams of Etihad Airways Partners".

In August, Jet Airways Group reported its fifth successive profitable quarter for the period ending June 30, 2016 as a consequence of its partnership with Etihad Airways.

The tie-up brought improvement in aircraft utilization, increased efficiency and reduction in cost, including non-fuel expenses.

Operating profit increased by 124 per cent to $33 million.

In August this year, Goyal said: "Our strategic partnership with Etihad Airways continues to strengthen. In Q1, codeshare traffic delivered by Etihad Airways and other Etihad Airways Partner airlines to Jet Airways grew by 41 per cent."

James Hogan, vice chairman, Jet Airways and president and chief executive officer, Etihad Aviation Group, said: "Jet Airways continues to grow its traffic over the Abu Dhabi gateway, complementing the Etihad Airways network. Together, we are the largest combined scheduled operator of flights to and from India with a 20 per cent market share."

Overall codeshare traffic for the first quarter of FY17 grew 13 per cent to 551,859 passengers.

haseeb@khaleejtimes.com