Monday 18 February 2013

Etihad needs to revise Jet deal: Chairman

Etihad Airways needs to revise its deal to buy a stake in Jet Airways and it is too soon to say when a final agreement will be struck, the Abu Dhabi airline's chairman said on Sunday.
 Hamed bin Zayed al-Nahayan, speaking on the sidelines of a defence exhibition in the UAE capital, said officials would meet Industry Minister Anand Sharma to discuss the deal.
 Asked if a Jet deal would be signed by March or April, Hamed said: "I don't know... we need to revise it."
  The terms of the possible deal have not been disclosed, but a government source said earlier this month Etihad was in talks to pick up a 24 per cent stake in Jet for up to $330 million (Rs 1,792 crore).
 Asked if a Jet deal would be finalised soon, Hamed said: "It's too early to decide."
 Hamed, also managing director of the sovereign wealth fund, Abu Dhabi Investment Authority, did not specify why the deal needs to be revised.
 "We need to talk with the Indians about other issues... including this," he said.
 Unlisted Etihad's chief executive said this month the Abu Dhabi carrier was conducting due diligence on making an investment and would present the findings to its board.
 The Jet Airways deal would be the first foreign investment in India's aviation industry since the government relaxed ownership rules last September.
 This allows foreign airlines to buy up to 49 per cent in the country's domestic carriers, many of which are facing stiff competition and high operating costs.
 Hamed also dismissed talk of the carrier's interest in grounded Kingfisher Airlines as "rumours".
 Kingfisher said in December it was in talks with several investors, including Etihad, for a stake sale but those hopes have faded as the indebted airline remains grounded.
http://www.business-standard.com/article/companies/etihad-needs-to-revise-jet-deal-chairman-113021700577_1.html

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