In a move that could be seen as a step towards its
proposed investment plans in Jet Airways, Etihad Airways on Wednesday announced
it has paid $70 million (Rs 374 crore at Rs 54 to a dollar) for three slots of
the Indian carrier at Heathrow airport in London.
"Etihad
Airways can confirm that it has concluded a transaction with Jet to purchase
Jet's three pairs of Heathrow slots for $70 million. The purchase is part of a
sale and lease back agreement signed on February 26, 2013," Etihad said in
a statement.
The airline added
that Jet Airways will continue to operate flights to London utilising these
slots.
With this
announcement, stocks of Jet Airways that has been on a fall for a few days
jumped 19.27 per cent during the day's trade to close at Rs 534.85 on the BSE
on Wednesday.
Etihad also said
that they are in talks with Jet Airways on a proposed stake sale by the later.
"As previously advised, Etihad Airways continues to progress discussions
about further investment in Jet Airways," said the statement.
As reported,
Naresh Goyal-promoted Jet Airways is likely to sell 24 per cent stake in Etihad
for around Rs 1,600 crore.
Talks on the deal,
which started in September last year, hit a hurdle with the Abu Dhabi-based
airline saying that it wanted to relook at its investment plan in the Indian
carrier. The reason given for the relook were concerns over investing in the
Indian market
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