Eithad looks set to seal the deal with India's Jet Airways
Abu Dhabi's Etihad Airways will finalise a deal to buy a stake in India's Jet Airways, the first such investment by a foreign carrier in an Indian airline since rules were relaxed last year, CNBC TV18 reported.
A deal may be announced as early as Friday or by the first week of February, the TV channel said.
The Gulf carrier could pay up to $330 million for a 24 percent stake in Jet, India's second-biggest carrier, a senior government source said earlier this month. Etihad and Jet did not immediately respond to requests for comment.
The Indian government allowed foreign carriers to buy stakes of up to 49 percent in local carriers in September 2012, a move seen as a boon for India's debt-laden airlines.
Jet has previously said it was in talks with Etihad, but the terms of the deal were not finalized.
Etihad and Jet have a code-sharing agreement, and a tie-up could make Jet a more formidable competitor to state-owned Air India, while strengthening Etihad's position against Dubai-based Emirates Airline, which carries a big chunk of the traffic between India and the Middle East.
Jet shares, which have gained 180 percent over the past year on hopes of a potential fund raising, were up 2 percent at 617.25 rupees on the National Stock Exchange.
- Tunisian, Moroccan Chambers of Commerce meet to discuss economic partnership
- Winter wonderland: Dubai debuts Aspen Chalets with view of Ski Dubai
- Egyptian economic experts predict inflation rate will continue to climb
- Shoura Council: Expats cannot buy property in Mecca, Medina, Riyadh
- Tensions increase between Egypt, Italy over renewable energy projects
- UAE's Etihad mulls equity stake in Serbia's JAT Airways
- Airline Darwinism: Eithad, Alitalia reach breakthrough in negotiations
- Etihad should revise Jet Airways deal
- Etihad deal with Indian Jet airline faces controversy in India
- Etihad Airways to invest us$379 million for a 24 per cent stake in Jet Airways