Jet Airways said on Thursday that it was in talks with Eithad Airways regarding a potential investment by the Abu-Dhabi based airline in the Indian carrier.

“Discussions have commenced recently pursuant to the liberalised FDI Policy which permitted foreign investment in the shares of an Indian airline. The discussions are in progress, but no terms have been firmed up at present. 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,” Jet Airways said in a filing to the Bombay Stock Exchange on Thursday.

This is the first time Jet Airways has confirmed a potential deal between the two airline companies. The shares of Jet Airways surged 4.70 per cent on the BSE on Thursday and closed at Rs 607. From October till date, the stock has risen 75.5 per cent. “Since no agreement has been reached with Etihad as yet, no regulatory approvals have been sought at present. An appropriate announcement shall be made upon finalisation of the terms of the investment with Ethiad according to legal and regulatory requirements,” the airline added.

According to reports, the deal is likely to fetch Jet Airways Rs 1,800 crore.

Code-sharing deal

Jet Airways and Etihad have a code-sharing agreement. “This deal will be profitable to both. Jet can gain larger market share, while Etihad will get a major exposure in India and also strengthen its position in West Asia,” said an aviation analyst.

The confirmation of Jet and Etihad’s talks has brought cash-strapped Kingfisher Airlines back to square one in its efforts to strike a deal with a foreign investor.

>nivedita.ganguly@thehindu.co.in

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