On Wednesday, it was announced that Etihad Aviation Group would function as a public joint-stock company (PJSC). The airline is striving to further establish itself not just as a regional, but also as a global airline company.[wpsr_linkedin]
Abu Dhabi’s Ruler, His Highness President Sheikh Khalifa bin Zayed Al Nahyan issued a new law which gives Eitihad Airways the status of a public joint-stock company. This means that Etihad will be able to issue stock for secondary market trading. Still, stockholders will be liable for the debts of the company. The biggest advantage of this type of company is namely the limited liability.
According to the newly-issued law, Etihad Airways will function as an independent corporate entity. The company will operate in its complete legal capacity, yet its owner will be the Abu Dhabi’s government. In addition, among the company’s objectives will be to invest, manage, own, build, acquire, operate, finance, develop, relinquish, as well as license and register intellectual property rights, patients, brands, designs, trade names and etc.
It is still not clear when Etihad Airways will be listed on Abu Dhabi Security Exchange (ADX) or on a foreign exchange, as for example, in London. However, it may take somewhere from six months to a year for the listing to go live. It is very early to predict the shares value.
Just a few hours ago, Eihad Airways announced that it has registered an impressive growth during the first six months of the year. According to the company, during H1 2014, it witnessed a 20% increase in the number of passengers and cargo volume. In just half a year, Etihad has served 6.7 million passengers.