Etihad to take decision on investing in Jet next week

The airline is in talks with Jet Airways to pick up 24% stake in the latter

Etihad Airways  board will take a final call on investing in Jet Airways, the airline said at a post result conference today. The Abu Dhabi based airline is in talks with Jet Airways and is expected to pick up 24% stake for about Rs 1,600 crore.

Last week, Etihad top brass called on civil aviation minister Ajit Singh and his colleagues finance minister P Chidambaram and commerce minister Anand Sharma to apprise them about their talks with Jet and interest in Indian civil aviation market.

Etihad chief executive officer James Hogan told media persons that due diligence findings will be presented to the airline board next week which will then  take a decision on investing in Jet. Hogan said Etihad management met Singh to understand the new foreign direct investment rules and the issues impacting civil aviation in India.

On Monday Etihad posted a 200% rise in net profit in 2012 and a 17% increase in revenues. Etihad posted a net income of $42 million last year compared to $14 million in 2011 when it made its first ever profit, said the statement which attributed the rise to strong improvements in revenues, passengers and cost control.

The airline has picked up stakes in airberlin, Aer Lingus, Air Seychelles and Virgin Australia with a combined network connecting 384 destinations and a fleet of 379 planes. These partnerships deliver value to customers besides bringing cost synergies and joint procurement, Hogan said.

"No other East carrier has such a reach,'' Hogan told media. The airline's code share partners contributed to 19 percent of Etihad's revenue up 42% over last year.