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The carrier yet to seek
regulatory nod
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Jet Airways is
yet to seek regulatory clearance for its proposed partnership with Abu
Dhabi-based Etihad Airways, the airline
informed the Bombay Stock Exchange today. The statement is also the airline's
first formal admission of negotiations with the Gulf airline.
"Since no agreement has been reached
with Etihad as yet no regulatory approvals have been sought at present,"
Jet said.
A
top functionary from the Civil Aviation Ministry on Wednesday said the deal
between the two airlines will be concluded in 10 days with Etihad picking up
24% stake for Rs 1,500-Rs 1,800 crore. Naresh Goyal owns 80% in the airline
through Isle of Man-based Tail Winds Ltd.
"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 regulatory requirements are fully complied
with," the airline said.
It
said giving a timeline for conclusion of the deal was difficult considering the
complexities.
Jet
Airways stock was up 4.89% at Rs 607.95 at close of trade on Thursday.
Etihad
has been in negotiations with both Jet Airways and Kingfisher for the last couple
of months. Etihad executives have visited offices of both the airlines for due
diligence and inspect the facilities. Last month, Kingfisher board decided to
cap foreign institutional investment in the airline at 3% to make room for
possible investment by Etihad.
Kingfisher
has been pinning hopes on Etihad investment as it will help it to revive its
operations which have been suspended since October. The airline's operating
permit expired on December 31. Etihad did not give comment for the story.
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