Etihad Airways confirmed (28-May-2013) it will acquire, subject to regulatory approval, a 24% stake in Jet Airways by subscribing for 27,263,372 new shares in the airline, for a USD379 million equity investment. The carrier provided the following details of the agreement, in its 'Etihad fast facts and figures' release for Apr-2013:
- The wider overall commitment to Jet Airways includes the injection of USD220 million to "create and strengthen a wide-ranging partnership". This is in addition to the USD70 million Etihad Airways paid to purchase Jet Airways’ three pairs of slots at London Heathrow International Airport, as part of a sale and lease back agreement announced in Feb-2013. Jet Airways continues to operate flights to London utilising these slots;
- Etihad Airways will invest USD150 million by way of a majority equity investment in Jet Airways’ frequent flyer programme ‘Jet Privilege’, subject to appropriate regulatory and corporate approvals and final commercial agreements which are expected to be completed within the next six months;
- Under the strategic partnership Etihad Airways and Jet Airways will gradually expand existing operations and introduce new routes between India and Abu Dhabi. Jet Airways will establish its Gulf hub in Abu Dhabi.