Jet Airways (India) Ltd. (JETIN) won approval from India’s investment panel to sell a stake to Etihad Airways PJSC, the first share sale by a local carrier to a foreign airline after the nation eased ownership rules.
Jet’s plan to sell a 24 percent stake to Etihad was approved by the Foreign Investment Promotion Board, Economic Affairs Secretary Arvind Mayaram told reporters in New Delhi today. The deal will need approvals from India’s finance minister and Cabinet Committee on Economic Affairs, a government official said, asking not to be named pending a formal announcement.
The agreement with Abu Dhabi-based Etihad will help Jet raise 20.6 billion rupees ($347 million) of funds for fleet expansion and paring debt after six years of losses caused by a price war and high fuel costs. Etihad will gain access to a market where air travel is forecast by CAPA Centre for Aviation and SITA to triple to 452 million by 2020.
29/07/13 Tushar Dhara & Karthikeyan Sundaram/Bloomberg
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Jet’s plan to sell a 24 percent stake to Etihad was approved by the Foreign Investment Promotion Board, Economic Affairs Secretary Arvind Mayaram told reporters in New Delhi today. The deal will need approvals from India’s finance minister and Cabinet Committee on Economic Affairs, a government official said, asking not to be named pending a formal announcement.
The agreement with Abu Dhabi-based Etihad will help Jet raise 20.6 billion rupees ($347 million) of funds for fleet expansion and paring debt after six years of losses caused by a price war and high fuel costs. Etihad will gain access to a market where air travel is forecast by CAPA Centre for Aviation and SITA to triple to 452 million by 2020.
29/07/13 Tushar Dhara & Karthikeyan Sundaram/Bloomberg
