Abu Dhabi to invest Rs 27,000 crore in India

NEW DELHI: Abu Dhabi's commitment to invest Rs 27,000 crore in India may have proved to be the clincher for India agreeing to grant a massive increase in flying rights between the two countries. This commitment was made to top Indian ministers, who visited the oil rich emirate in recent weeks. Aviation minister Ajit Singh described the $379 investment by Etihad in Jet as a win-win for flyers. "It provides more competition and more connectivity and better efficiency. Competition is always good for any industry," Singh told reporters, while asking Air India to "look after themselves and gear up." Etihad president and CEO James Hogan on Thursday said it expected strong growth from the Indian market. "From 42 million travellers last year, International Air Transport Association is predicting more than 100 million by 2016 — in just four years. Together, through a combination of codeshare services and direct flights, Etihad and Jet will connect 23 Indian cities to international services," the Hogan said in reply to a TOI questionnaire. However, India is unlikely to see Etihad's Airbus A-380s to fly here. "Etihad will receive the first of 10 A-380s late in 2014. The routes these aircraft will fly are yet to be finalized, but the intention is to operate them on long-haul, high capacity routes. It is likely through code sharing (between the airlines) that Jet passengers will experience not only our A-380s when they enter service, but also our new Boeing 787 Dreamliners and other aircraft," Hogan said. The Gulf carrier is looking at a major partnership with Jet as the latter plans to use Abu Dhabi as its biggest hub. "We will explore joint purchasing of supplies such as fuel, spare parts, equipment and catering supplies, as well as external services such as insurance and technology support," he said.   TOI