Etihad may pick up 24% stake in Jet; deal announcement likely today

Government expects that the decision will help bring in more funds to the airlines that have been cold-shouldered by banks.

Zeebiz Bureau

New Delhi: Citing government sources, a business daily has said that Abu Dhabi based passenger carrier Etihad Airways may pick up 24 percent stake in Jet Airways, though there has been no official confirmation from both the airline companies as yet.

Etihad Airways may pick up a 49 percent stake in Jet Airways over the years, as per another business newspaper report.

Talks between both the airlines were going on for a month, and both parties seem to have come to an understanding for a possible stake sale.

Meanwhile, Civil Aviation Minister Ajit Singh yesterday said that there was no problem in a stake sale deal between Jet Airways and Etihad Airways if the two airlines get regulatory clearance.

"Any foreign airline investing money has many concerns. On the policy, what's the cost structure, becuse they are going to put in money to make money out of it (investment). They have been discussing this deal for over a month," he said yesterday.

With Agency Inputs