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Etihad to invest in Jet Airways




New Delhi: With the government having allowed foreign carriers to buy up to 49 percent stake in domestic airlines, India’s leading private airline, Jet Airways could be the first to receive investment from Etihad Airways.

According to reports, both the airlines have held several rounds of discussions, fuelling speculation of a possible alliance.

Last week, the Cabinet Committee on Economic Affairs approved the FDI in aviation proposal, a permit that would allow foreign airlines to buy up to 49 percent in domestic carriers and a move which would pave way for much-needed equity infusion into India's airlines passing through acute turbulence as most of them are in dire need of funds for operations.

Jet Airways and Etihad had signed a code-sharing agreement in 2008 following which James Hogan, CEO of Etihad, sought the government’s permission to include more India-Abu Dhabi routes in its scheme.

If the deal works out, Jet Airways will be the first domestic airlines to receive foreign direct investment after the government’s policy clearance.




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