MUMBAI/NEW DELHI: Abu Dhabi-based airline Etihadmight announce an India investment within the next 10 days, a
top civil aviation ministry source said on Wednesday.
The ministry source went on to add that Etihad has not yet decided whether it will invest in Jet AirwaysBSE 5.59 % or the debt-laden Kingfisher AirlinesBSE -1.12 % that has not taken to the skies since October last year and also has an expired air operating permit.
"Etihad is likely to decide on an investment in either Jet Airways or Kingfisher Airlines in their next board meeting," he added. There were unconfirmed reports of an Etihad board meet likely to take place next week to announce the equity partnership with an Indian carrier.
According to sources, James Hogan, Etihad's CEO and the person who is widely believed to be driving the negotiations, is on leave till January 4 and things would move once he is back in action.
"A deal is possible within next 10 days, there are a number of agreements to be signed as part of it," the ministry source said
Jet's promoter and chairman Naresh Goyal was in Abu Dhabi for about a fortnight in December and returned only on December 30, a source at Jet Airways added. Goyal was accompanied by his wife Anita Goyal (who plays an active role in the airline company) along with some other top level management personnel.
"None of the Kingfisher top brass is in Abu Dhabi. We are assuming that Jet would have got the deal otherwise why would Naresh Goyal be there for so long?" a Kingfisher top official said on condition of anonymity.
The deal that has been speculated upon widely will be the first investment in domestic airlines by a foreign carrier. Talks for the investment started in September as reported first by ET. The Indian government allowed foreign investment in domestic airline companies last year.
But sources in Jet Airways said that it is difficult to say when a deal will be clinched as "negotiations with Etihad were still on and when will an announcement be made cannot be predicted." Jet Airways stocks were marginally up at the BSE and closed at Rs 579.60, a marginal gain of 0.47%, Kingfisher shares were up 4.91%, closing at Rs 15.16 a share on Wednesday when stock markets touched a two-year high.
The ministry source went on to add that Etihad has not yet decided whether it will invest in Jet AirwaysBSE 5.59 % or the debt-laden Kingfisher AirlinesBSE -1.12 % that has not taken to the skies since October last year and also has an expired air operating permit.
"Etihad is likely to decide on an investment in either Jet Airways or Kingfisher Airlines in their next board meeting," he added. There were unconfirmed reports of an Etihad board meet likely to take place next week to announce the equity partnership with an Indian carrier.
According to sources, James Hogan, Etihad's CEO and the person who is widely believed to be driving the negotiations, is on leave till January 4 and things would move once he is back in action.
"A deal is possible within next 10 days, there are a number of agreements to be signed as part of it," the ministry source said
Jet's promoter and chairman Naresh Goyal was in Abu Dhabi for about a fortnight in December and returned only on December 30, a source at Jet Airways added. Goyal was accompanied by his wife Anita Goyal (who plays an active role in the airline company) along with some other top level management personnel.
"None of the Kingfisher top brass is in Abu Dhabi. We are assuming that Jet would have got the deal otherwise why would Naresh Goyal be there for so long?" a Kingfisher top official said on condition of anonymity.
The deal that has been speculated upon widely will be the first investment in domestic airlines by a foreign carrier. Talks for the investment started in September as reported first by ET. The Indian government allowed foreign investment in domestic airline companies last year.
But sources in Jet Airways said that it is difficult to say when a deal will be clinched as "negotiations with Etihad were still on and when will an announcement be made cannot be predicted." Jet Airways stocks were marginally up at the BSE and closed at Rs 579.60, a marginal gain of 0.47%, Kingfisher shares were up 4.91%, closing at Rs 15.16 a share on Wednesday when stock markets touched a two-year high.
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