The Indian cabinet approved the deal worth USD330 million for the purchase by Abu Dhabi's Etihad Airways of a stake in Jet Airways. This was confirmed by Aviation Minister Ajit Singh with reporters and this would take the companies a step closer to complete the deal.
Last April, Etihad agreed to purchase a 24% stake in Jet Airways. This is the first of its kind after the new guidelines were instituted by the Indian government last September 2012. The new rules allowed foreign airlines to own up to 49% of Indian air carriers.
The deal had been delayed because of the review by Indian regulators as well as opposition due to politician clout. The foreign investments regulator though had cleared the Etihad-Jet deal with conditions last July. The deal would now have to pass through the review of the anti-trust regulatory authority's approval.
Jet Airways was sought for a reply through email but no comment was provided.
Join the Conversation