[Economic Times] MUMBAI: In what is seen as a step towards closing its proposed investment plans in Jet Airways, Etihad Airways on Wednesday said it has paid $70 million to buy three slots of the Naresh Goyal-promoted airline 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 yesterday,” Etihad said in a statement.
The statement further said Jet will continue to operate flights to London utilising these slots.
The deal further strengthens the existing commercial relationship between the two airlines, which came into effect in July 2008, making provision for code-sharing, Etihad said.
On the ongoing stake sale talks between the two, Etihad said they continue to progress with discussions about further investment in Jet.
However, on the 24 per cent proposed stake sale toEtihad, Jet sources said, Jet has reportedly agreed to cede more management control, including more board positions to Etihad. However, this could not be officially verified with either Jet or Etihad officials.
This is to enable sealing the deal that has of late hit some air pockets with the UAE-based airline saying that it wanted to re-look at its investment plan in Jet……
27th Feb, 2013
- Jet Airways stock surges 9% in morning trade (news.in.msn.com)
- Etihad announces deal with Jet Airways for Heathrow slots (news.in.msn.com)