New Delhi: Gulf carrier Etihad Airways, seeking to widen operations in India and other Asian markets, is in the final stages of talks to buy part of either Jet Airways or grounded rival Kingfisher Airlines, an Indian government official said on Monday.
A deal, which the official said could be announced by next week, would be the first since the government relaxed ownership rules in September to allow foreign airlines to invest up to 49 percent in a domestic carrier.
"Etihad has not yet decided. They are talking to both," said the officials, who has knowledge of the talks but declined to be named as the negotiations are confidential.
Buying into Jet is seen as more lucrative for Etihad as the two carriers already have a code-sharing agreement and could target the market share of state-owned Air India and Dubai-based Emirates Airline EMIRA.UL, which dominates routes between India and the Middle East.
17/12/12 Anurag Kotoky/Reuters.com
