Etihad Airways is to pay Rs20.6bn ($380m) for a 24% stake in India's Jet Airways. The deal is seen as very strategic, as it is expected to feed more Indian passengers into the Gulf airline's global network. In a statement to the Bombay Stock Exchange yesterday, Indian airline Jet said that it would issue 27.26m new shares to Etihad, which is based in Abu Dhabi, for Rs754.7 each. The transaction will help the Indian airline to reduce its estimated 22.3bn of debt.
The deal was announced a day after New Delhi granted Jet the right to carry 55,000 passengers to Abu Dhabi each week, up from around 13,000.
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