Etihad Airways confirmed it had invested 24 percent stake in India's Jet Airways for USD$379 million. Etihad Airways said in a statement it would subscribe to 27.3 million new shares at 754.74 rupees per share.
The deal would give Etihad Airways a larger market share in India, a fast-growing but challenging market. This challenging market could have a high potential of return and provide Etihad with steady amount of growth. Also it gives Jet Airways with the opportunity to hold cash to pay the required debt of the company.
"It's a game-changing opportunity for Etihad, and a game-changing opportunity for India," Kapil Kaul, regional head of the Centre for Asia Pacific Aviation (CAPA).
Etihad has negotiated stake purchases in four foreign airlines including
Air Berlin, Virgin Australia, Aer Lingus and Air Seychelles.
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