Etihad board to decide on buying Jet stake next week
The deal with Jet Airways would be the first foreign investment in an Indian airline since the government opened up the sector to 49% foreign direct investment last September. The two airlines have been in talks and while details of the deal have not been announced by either of the airlines, sources say that Etihad is likely to pick up a 24% stake in Jet for anywhere between $300 million and $350 million.
Etihad and Jet’s officials met with senior officials of the Indian government last week. The delegations of the two airlines met civil aviation minister Ajit Singh, commerce minister Anand Sharma and finance minister P Chidambaram.
Hogan said on Monday that the meeting was to understand the new rules of India’s foreign direct investment scheme. “We also wanted to understand the issues that have impacted Indian civil aviation, how they think this will change in the coming years,” he said.
Unlisted Etihad had been making investments in a number of airlines across the world in the last year. It
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