Etihad said to eye stake in India’s Jet Airways

Monday, 24 September 2012 00:00 - - {{hitsCtrl.values.hits}}

Etihad Airways may pick up a minority stake in India’s Jet Airways after the government liberalised rules for foreign ownership, it has been reported.

Shares in Jet Airways surged on Thursday on reports that it was in talks with the Abu Dhabi flag carrier over a possible deal.

Media reports suggested Etihad was interested in buying a stake in India’s oldest surviving private airline.

A spokesperson for Etihad was quoted by Zawya Dow Jones as saying India’s aviation industry offered “tremendous potential”, adding that the carrier had “identified equity investments in other airlines” without mentioning any specific names.

“The two sides have held several rounds of discussions, the first of which took place at Jet’s office in Mumbai before the venue shifted to Abu Dhabi where Etihad is based,” India’s Economic Times added.

Last week, the government relaxed its rules to allow foreign carriers to buy up to 49 percent stake in Indian airlines.

By allowing FDI from foreign carriers, the government has opened up new avenues for fund raising by domestic carriers who are currently finding it tough to raise money from Indian banks.

Earlier this month, Neil Mills, CEO of low cost carrier SpiceJet, told Arabian Business it had held “preliminary discussions” with Gulf airlines about making a potential investment in the low-cost carrier. “There have been preliminary discussions to check in principle whether there is interest on both sides and the confirmation there would be ‘yes there is’,” Mills said.

(Arabian business.com)