• Home
• /
• Local business

Etihad’s discussions on potential investments in progress

ABU DHABI — Etihad Airways, which purchased Jet Airways’ slots at Heathrow, confirmed on Wednesday its discussions on potential investments were progressing.

The purchase of three slots for $70 million and a positive signal on its plansto investment in India’s private air carrier, boosted its share prices by 19.7 per cent on Wednesday. The last week saw prices stumbling, when according to media reports an Etihad Airways official said the proposed deal needed to be revised.

Etihad Airways, which enjoys a fruitful commercial relationship with the Indian airline, after it signed a code sharing agreement in July 2008, showed interest to acquire a 24 per cent stake in Jet Airways for $300 million, after India relaxed rules on foreign investment into the aviation sector.

It sent a high level delegation to India to meet with the government officials and industry stakeholders to discuss the new rules and regulations that have allowed foreign investors to own a maximum of 49 per cent stake in an airline.

The relaxation will benefit airlines facing tough local competition and higher operating costs.

The shareholders of Jet Airways were bullish on Wednesday on the deal as according to some Indian media reports Etihad Airways was close to finalise the deal to acquire a minority stake in the company and that Heathrow deal was part of it. The Heathrow deal is part of a sale and lease back agreement signed on Tuesday.

• haseeb@khaleejtimes.com