|UAE carrier invests in Jet Airways, codeshares with Air Canada.|
Etihad Airways has partnered with Air Canada for commercial cooperation and invested US$379 million in India’s Jet Airways.
The Emirati carrier signed a Memorandum of Understanding (MoU) for a reciprocal codeshare on services to Etihad Airways’ Abu Dhabi hub and select points in North America served by Air Canada via its Toronto hub.
The partnership will also allow for frequent flyer accrual for both airlines passengers.
The new codesharing agreement is slated to begin in the third quarter of 2013, subject to regulatory approval.
Meanwhile, Etihad will invest US$379 million for a 24 percent share in Jet Airways.
The two airlines forged a strategic alliance through FDI policy of the Government of India, in order to deliver revenue growth and cost synergies.
Etihad Airways has also invested US$220 million to strengthen its partnership with the Indian carrier.
US$70 million was used to purchase Jet Airways’ three pairs of Heathrow slots, while the remaining US$150 million will be invested in Jet Airways’ frequent flyer program ‘Jet Privilege’.
The two airlines plan to expand existing operations and introduce new routes between India and Abu Dhabi, while combining their network of 140 destinations.
Passengers from 23 Indian cities will benefit from direct connections to international destinations.
“The Indian market is fundamental to our business model of organic growth partnerships and equity investments. This deal will allow us to compete more effectively in one of the largest and fastest-growing markets in the world,” Etihad Airways president and chief executive James Hogan said.