Etihad board to consider investment in Kingfisher, Jet

Etihad board is likely to meet next week to firm up its investment plans in India. The board will consider proposal of both cash-trapped airlines Jet Airways and Kingfisher Airlines, reports CNBC-TV18 quoting sources.

It is learnt that Etihad-Jet talks may factor in two-part deal. Jet promoters hold 80% in the company through Tail Winds and is likely to issue warrants which can be converted to equities later. Post deal, Etihad is likely to hold 22-24% in Jet which currently has a debt of USD 2.3 billion.

Meanwhile, the Gulf carrier may also consider revival plans of Kingfisher. Earlier, Etihad had sought more clarity on operations and fund infusion from UB Group. According to sources, Etihad wants all dues cleared ahead of any possible deal.

Kingfisher Airlines dives 5% on flying permit expiry

Kingfisher will need about Rs 425 crore to restart its operations. The Vijay Mallya-led airline lost its flying license on December. Kingfisher Airlines submitted a third revival plan on December 24 to save its licence, but the aviation regulator found it unconvincing and demanded reassurances from the company besides setting many preconditions on December 29.