Shareholders of Jet Airways has approved the sale of a 24% stake in the carrier to Abu Dhabi-based Etihad.
Naresh Goyal, Chairman of Jet Airways, welcomed the move at a shareholder meeting in Mumbai on Friday.
“Etihad investment will help us to deleverage and grow in a sustainable manner. This agreement will help us to expand network, reduce costs and increase profitability”,
As part of the deal, which is still subject to final regulatory authorization, Etihad would acquire 24 percent stake in Jet Airways for about £242 million in the first ever investment by a foreign carrier in an Indian airline since the government amended the country’s rules on Foreign Direct Investment.
Both the companies have said that substantial ownership and effective control will remain with Indian nationals, with Goyal as non-executive chairman holding 51 percent stake.