India's Jet favoured for Etihad Airways deal

Gov't source says Jet Airways investment by Abu Dhabi carrier expected in 10 days

India's Jet Airways Ltd is the front-runner for an investment by Gulf carrier Etihad Airways, a senior Indian government source told reporters on Wednesday.

The source added that a deal was likely in 10 days, Reuters reported.

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 had said on December 17.

A deal 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.

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, the latter of which dominates routes between India and the Middle East.

Indian carrier Jet Airways said on December 29 that it will add flights to Dubai from two Indian cities later this month.

It will start flying six times a week to Dubai from Mangalore from January 3 and will introduce a second service between Delhi and Dubai from January 18.

Jet Airways currently operates daily direct flights to Dubai from Delhi, and four services a day from Mumbai.

Related:
Join the Discussion

Disclaimer:The view expressed here by our readers are not necessarily shared by Arabian Business, its employees, sponsors or its advertisers.

Please post responsibly. Commenter Rules

  • No comments yet, be the first!

All comments are subject to approval before appearing

Further reading

Features & Analysis
Accounting meets religion in challenge for Islamic banks

Accounting meets religion in challenge for Islamic banks

Reconciling accounting standards and religious principles is...

Banking on reforms in Kuwait

Banking on reforms in Kuwait

As Kuwait stares down its first deficit in 20 years, the Gulf...

Saudis face dilemma between size and pricing in debut bond sale

Saudis face dilemma between size and pricing in debut bond sale

Riyadh is under pressure to maximise the size of its international...

Most Discussed
sponsoredTracking