Jet Airways stake sale: Etihad to talk to Indian govt

Both airlines are learnt to have appointed global consultants as they want the investments to be on a sound footing, given the high operating costs in India.

Etihad has in the past two years picked up stake in several international carriers like Virgin Australia, airberlin, Air Seychelles and Aer Lingus.

When Etihad was set up in 2003, it had sought the help of the Naresh Goyal-owned carrier to set up its systems and Jet had provided assistance with its specialists in various fields of aviation operations.

Unconfirmed reports had then said Goyal had also invested some money in the Gulf carrier.

A major reason for Goyal proposing to dilute part of his shareholding in Jet from 80 percent has been a recent order of the Foreign Investment Promotion Board (FIPB) to bring it down to the regulatory levels.

Jet and Etihad already have a code-sharing agreement. "This deal will be profitable to both. Jet can gain larger market share, while Etihad will get a major exposure in India and also strengthen its position in West Asia," an aviation analyst said.

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