Jet-Etihad deal to finalise within in a month: Sources

The much-awaited Jet Airways and Etihad Airways deal is likely to finalise within a month, which was earlier suspected to be delayed till August, Sumit Jha of CNBC-TV18 reports quoting government sources.

Abu Dhabi-based carrier had earlier sought assurances from Indian government following setbacks for several Gulf investors in India. Sources said that Indian government is now convincing United Arab Emirates (UAE) government to not hold Jet-Etihad deal hostage to the Bilateral Investment Protection Agreement (BIPA), which is likely to take some time. Also read: Jet Airways to dilute stake via OFS route: Sources
Earlier, the Prime Minister was supposed to visit UAE and work on BIPA; however that visit has been postponed towards end of this year. Sources indicated that the government is trying to work a way out of this logjam and then the deal could be finalized even before BIPA takes shape.
Sources said that the government is convincing the UAE government to clear the deal and that in return in it will give an overall assurance on how BIPA would turnout.
Jet-Etihad deal is likely to lift up the gloom hanging over Indian aviation sectors which has been stressed since last one year.
Etihad has been in talks with Jet Airways since September after India relaxed ownership rules and allowed foreign airlines to buy up to 49 percent in local carriers. The Gulf airline is eyeing a 24 percent stake, valued at about $330 million, according to Reuters report.