MUMBAI:
As Jet AirwaysBSE -7.03 % and Etihad
huddled in talks over the weekend, the Abu Dhabi-based Etihad Airways' decision
on its Indian partner has reached a critical stage. Etihad is likely to be the
first foreign carrier to make an investment into Indian aviation sector after
the government allowed foreign airlines to partner with Indian companies.
The middle-east carrier kept Jet Airways and Kingfisher AirlinesBSE -1.43 % guessing even as it picked up a 70 per cent stake in Air Berlin's flier miles programme for over Rs 1,000 crore on Wednesday. According to a source in Kingfisher Airlines, the Etihad management , under CEO James Hogan, had indicated that the management will decide on a possible investment in Indian aviation sectorvery soon.
Kingfisher top brass is still waiting, giving credence to the buzz that Etihad may lean towards Jet Airways as its Indian partner. "We have not heard anything. We are waiting. If the decision goes in favour of Jet Airways, then we would think that Kingfisher was used as a ploy to beat down Jet Airways' valuation," said a senior Kingfisher official, not wanting to be identified. At the stock bourses, the investors were disappointed in the absence of news for the second consecutive day.
The shares of Kingfisher and Jet fell. Jet Airways saw its share price plunge 7.03 per cent, or Rs 42.85, to Rs 566.50 a share. KFABSE -1.43 % fell 1.43 per cent to Rs 15.21 a share. Etihad warmed towards Kingfisher after a deal between United SpiritsBSE -2.67 % with spirits maker Diageo was announced, a source at Kingfisher Airline said.
The move to engage with Kingfisher was done after the middleeastern carrier engaged with Jet to buy an equity stake. A Jet Airways source confirmed that Etihad is still in talks, but is taking time for talks to fructify.
http://economictimes.indiatimes.com/news/news-by-industry/transportation/airlines-/-aviation/etihad-keeps-kingfisher-jet-airways-guessing-deal-may-be-sealed-soon/articleshow/17717254.cmsThe middle-east carrier kept Jet Airways and Kingfisher AirlinesBSE -1.43 % guessing even as it picked up a 70 per cent stake in Air Berlin's flier miles programme for over Rs 1,000 crore on Wednesday. According to a source in Kingfisher Airlines, the Etihad management , under CEO James Hogan, had indicated that the management will decide on a possible investment in Indian aviation sectorvery soon.
Kingfisher top brass is still waiting, giving credence to the buzz that Etihad may lean towards Jet Airways as its Indian partner. "We have not heard anything. We are waiting. If the decision goes in favour of Jet Airways, then we would think that Kingfisher was used as a ploy to beat down Jet Airways' valuation," said a senior Kingfisher official, not wanting to be identified. At the stock bourses, the investors were disappointed in the absence of news for the second consecutive day.
The shares of Kingfisher and Jet fell. Jet Airways saw its share price plunge 7.03 per cent, or Rs 42.85, to Rs 566.50 a share. KFABSE -1.43 % fell 1.43 per cent to Rs 15.21 a share. Etihad warmed towards Kingfisher after a deal between United SpiritsBSE -2.67 % with spirits maker Diageo was announced, a source at Kingfisher Airline said.
The move to engage with Kingfisher was done after the middleeastern carrier engaged with Jet to buy an equity stake. A Jet Airways source confirmed that Etihad is still in talks, but is taking time for talks to fructify.
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