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Dec 18, 2012, 10.24 AM IST | Source: CNBC-TV18

Etihad mulls picking 24% stake in Jet Airways

Etihad has been spoiled for choice as far as its India acquisition plan is concerned. Its executives are weighing their options and are in talks with both Jet Airways and Kingfisher Airlines

Etihad has been spoiled for choice as far as its India acquisition plan is concerned. Its executives are weighing their options and are in talks with both Jet Airways and Kingfisher Airlines . CNBC-TV18’s Kritka Saxena reports that Etihad executives met the Jet management over the weekend and the two sides discussed the possibility of a minority stake sale.

It is learnt from sources that if the deal is finalized, Jet may shift its international base from Brussels to Abu Dhabi . Etihad is likely to meet the Kingfisher Airlines as well. There have been repeated conversations, but final details haven’t been set out yet.

As far as Jet goes, it is learnt that Etihad is likely to pick minority stake of 24 percent in the company. There have been discussions on how the deal will go through if at all the term-sheet is signed.

Also, if Etihad acquires 24 percent in Jet then it will have an alliance with Etihad and as a part of that, they will shift the international base from Brussels to Abu Dhabi. Apart from that, Jet Airways will be expanding their codesharing pact and streamline operations as a whole.

Jet Airways was working on a pact in order to join the Star Alliance. If the Etihad deal is signed then the plan of joining the Star Alliance will have to be called off completely. According to sources, valuation between Rs 1,600-1,900 crore have been agreed upon but, Etihad hasn’t signed any term-sheet as yet. They are yet to take a decision. By the end of this week, some clarity might emerge.

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