New Delhi: Struggling Indian carriers Jet Airways and SpiceJet are in talks with Abu Dhabi’s Etihad Airways and Malaysia’s AirAsia Bhd to sell minority stakes, a senior government official with direct knowledge of the talks said.
Jet shares rose about 14.3 per cent and SpiceJet jumped as much as 19.2 per cent on Monday, continuing their rallies from last week amid speculation that they may become the first Indian carriers to secure foreign investment.
India changed its rules in September to allow foreign carriers to buy stakes of up to 49 per cent in local airlines, which have been battered by fierce competition and high operating costs.
The Jet-Etihad tie-up would be the biggest of the two deals, with a possible value of up to nearly $440 million (Dh1.62 billion), but the government official provided no details on the stakes involved or costs.
Talks between Etihad and Jet, which has 100 planes and is India’s largest airline by total passengers carried, have been the subject of recent media reports citing unnamed sources.
“The talks are on. This is more or less final. It may take around a month and half,” the government source told reporters, referring to the Jet-Etihad negotiations.
26/11/12 Reuters/Gulf News
