Despite strong observations from the PMO, Union Civil Aviation Minister Ajit Singh has backed the Jet-Etihad deal, triggering a crisis within the UPA-II government. The PMO has asked Ministry of Civil Aviation to look into concerns in the deal. However, Ajit Singh has threatened to walk out of the government if the deal does not go through.

The Jet-Etihad deal, which is considered as the biggest in Aviation sector, allegedly favours Abu Dhabi-based Etihad Airways over Jet. Under the proposed transaction, Jet would sell 24% of its stakes to Etihad Airways. The Prime Minister’s Office had asked Finance and Commerce Ministry to clarify the issues related to Jet-Etihad deal.

Janata Party president Subramanian Swamy and BJP leader Jaswant Singh had written to PM Dr. Manmohan Singh raising questions over the deal. While the matter will be discussed at the meeting called by the Cabinet Secretary , he is not willing to put it in the cold storage.