India’s Cabinet Committee on Economic Affairs has approved the Jet-Etihad deal.
The Cabinet approved the proposal of Etihad Airways PJSC, United Arab Emirates for subscribing 27,263,372 equity shares of INR 10 each of Jet Airways India Limited.
The deal will amounting to 24% of the post issue paid up equity share capital for an amount not exceeding US$ 333.02 million (INR2,057.66 crore), stated a PIB release. The Foreign Investment Promotion Board (FIPB) has recommended the proposal.
A senior executive at the airline told Economic Times, it will later this month announce a detailed expansion plans which includes connecting 20 Indian cities to Abu Dhabi.
Meanwhile, Etihad Airways has recently announced a major expansion plan in India. From 1 November, the airline plans to triple the number of seats it now offers between Mumbai-Abu Dhabi and New Delhi-Abu Dhabi.
Both the airlines have recently conducted major recruitment drive for their upcoming expansion plans.