In what would be the first such investment by a foreign carrier in an Indian airline since rules were relaxed last year, Abu Dhabi’s Etihad’s Airways proposal to pick up around 24 per cent stake in Jet Airways is expected to receive all regulatory clearances in the next two weeks, as per Civil Aviation Minister Ajit Singh. Top officials of both the company have already held discussions with the aviation and commerce ministries to inform the government about the deal.
The Gulf carrier is expected to shell around $330 million for acquiring 24% stake in Jet, country's second-biggest carrier. For Jet, the deal means fresh infusion of capital to cut down its debt and could also lead to rationalisation of its long haul network.
The two carriers have already entered into a code-share agreement for Abu Dhabi-Mumbai/Delhi routes operated by Jet Airways, and the flights originating from Abu Dhabi for Mumbai, Delhi, Cochin, Thiruvananthapuram, Kozhikode, Chennai and Hyderabad operated by Etihad.
UAE-based airline, Etihad off-lately has picked up minority stakes in various airlines across the globe. The airline owns 10% stake in Australian airline Virgin Australia, 2.89% in Ireland-based Aer Lingus, 40% stake in Air Seychelles and 29.1% stake in German carrier Air Berlin.