The much awaited aviation deal between the Etihad and Jet airways seems to be finalized, paving way for the first such investment by a foreign air carrier in an Indian airline, after the rules for FDI in aviation were relaxed last year.
Jet to shift international hub to Abu Dhabi?
Post the deal, Jet is learnt to shift its international hub to Abu Dhabi to bring in the benefits of lower ATF prices.
The Abu Dhabi-based Etihad Airways , had a spokesperson adding: “Various structures are being explored by the legal and commercial teams and care being taken to ensure that all the Indian regulatory requirements are fully complied with.”
CNBC TV-18 reports that Etihad is likely to have valued Jet airways at 1.25 billion US dollars. etihad to eventgually hold around 24% in jet. With the Etihad management agreeing on part warrant and equity structure, the company’s valuation of Jet seems to be at Rs.750 per share.
Shares of Jet Airways rose by over 4% in the BSE and NSE during Friday’s session.