Jet Airways down 4% as Etihad likely to call off deal

Jet Airways shares are down around 4 percent to Rs 552.55 on reports that the airline's probable deal with Etihad may be called off. According to CNBC-TV18 sources, the Board of Etihad is likely to meet on March 22 to take a final call on the deal which it is touted to have with Jet Airways.

Sources also say that Etihad has sought investment protection under the Bilateral Investment Promotion Agreement (BIPA) which India and UAE have not yet signed and this is of concern to Etihad.

However, companies may work out alternate structure to expand code share on international routes

The deal was likely to be announced last month, but Hamed bin Zayed al-Nahayan, chairman of Etihad Airways, told media that there were certain issues to be dealt with, before signing agreement with Jet Air.

Since September last year, reports of  likely Jet-Etihad started doing rounds and it was only in December that Jet confirmed about it, saying that it is still in negotiation phase

Etihad was keen to pick up 24 percent stakes in Jet Air at around USD 330 million.

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