Jet in talks with Etihad for stake sale

"Jet and Etihad are in a discussion regarding a potential investment by the latter in the former... These discussions have commenced recently pursuant to the liberalised FDI policy which permitted foreign investment in the shares of an Indian airline," Jet Airways informed the Bombay Stock Exchange.

"The discussions are in progress but no terms have been firmed up at present. Various structures are being explored by the legal and commercial teams," it said in its filing.

Following the statement, shares of Jet Airways rose sharply by about seven per cent to Rs 618.70.

This is the first time that Jet has admitted holding talks with Etihad for potential investment since the FDI policy was amended by the government in September 2012 to allow foreign airlines pick up upto 49 per cent equity in an Indian carrier.

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, with reports saying the Gulf carrier's Board would meet soon to decide on the matter.

Jet said it had not yet sought any regulatory approval as a deal with Etihad was still to be firmed up. An appropriate announcement would be made upon finalisation of the terms of the investment with Etihad as per legal and regulatory requirements, the BSE filing added.

When contacted, Etihad spokesperson Thomas Clarke told PTI on phone from Abu Dhabi: "Our position (on the issue) remains the same as we have stated earlier."

Few weeks ago, Etihad had said it "has identified equity investments in other airlines as an important evolution of its successful partnership strategy." (more)