Etihad Airways to take 24% stake in India's Jet Airways

An Indian security official looks on as an aircraft of Jet Airways taxies after landing at Indira Gandhi International Airport in New Delhi The Indian aviation sector is opening up to foreign investment

Related Stories

Etihad Airways is to take a 24% stake in India's budget carrier, Jet Airways.

The $379m (£248m) deal is the first foreign investment in an Indian airline since ownership restrictions in the sector were eased last year.

Jet, which has struggled of late, will get a boost from Eithad, which is based in the United Arab Emirates.

Etihad Airways is paying a premium of 32% on Jet's closing share price on Tuesday.

The deal is still subject to shareholder approval.

Etihad, which was set up 10 years ago, is keen to build alliances by taking stakes in airlines around the world. Last year, it bought 4% of Virgin Australia.

Even though passenger numbers and routes have increased rapidly in India in recent years, labour strife and mismanagement remain hurdles to profit growth. The only airline that consistently makes a profit in the domestic market is Indigo.

The Indian government eased restrictions on foreign ownership of companies in several sectors, including aviation, last year, in an effort to give support to the country's slowing economy.

More on This Story

Related Stories

More Business stories


Features & Analysis

  • Dana Lone HillDana Lone Hill

    The Native American names that break Facebook rules

  • Painting from Rothschild collectionDark arts Watch

    The 50-year fight to recover paintings looted by the Nazis

  • Mukesh SinghNo remorse

    Delhi bus rapist says victim shouldn't have fought back

  • Signposts showing the US and UK flagsCrossed lines

    How British misunderstanding of the US is growing

Elsewhere on the BBC

  • StudentsBull market

    Employers are snapping up students with this desirable degree


  • 3D model of Christ the Redeemer statueClick Watch

    Using drones to 3D map the famous Brazilian landmark Christ the Redeemer

Try our new site and tell us what you think. Learn more
Take me there

Copyright © 2015 BBC. The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.