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Etihad buys Jet Airways’ three slots in London for $70 million

27 Feb 2013 Evaluate

Inching closer to the proposed investment plans in Jet Airways, Abu Dhabi based Etihad Airways has paid $70 million to buy three slots of the Naresh Goyal-promoted airline at Heathrow airport in London. This development hints towards positive developments in the discussions, after a delayed announcement of the potential deal in the recent week.

A Jet-Etihad deal would be the first one ever since India eased ownership rules in September last year and allowed foreign carriers to buy up to 49 percent in local carriers, which are entangled in stiff competition amidst high operating costs.

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.

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.

Jet Airways (I) Share Price

34.04 0.00 (0.00%)
07-Nov-2024 00:00 View Price Chart
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