Eithad Airways in due diligence over Jet deal

Last Updated: Mon, Feb 04, 2013 12:20 hrs

Abu Dbahi/New Delhi, Feb 4 (IANS) Etihad Airways expects to complete its due diligence into a possible buy-out of stakes in Jet Airways by next week, a top company official said Monday.

Etihad chief executive James Hogan said after the due diligence was completed, a final proposal would be put before the board of the passenger carrier.

Hogan was speaking at a press conference in Abu Dhabi to announce the airline's annual results.

Talk of a possible stake sale has been doing the rounds for three months, ever since the government allowed foreign airlines to pick up 49 percent shares in domestic carriers.

Foreign carriers have so far not been allowed to directly invest in Indian carriers for security reasons although 49 percent FDI by non-airline players was allowed.

Recently, Hogan and Jet Airways' chairman Naresh Goel led a joint delegation of both the airlines and met Finance Minister P. Chidambaram, Civil Aviation Minister Ajit Singh and Commerce Minister Anand Sharma to appraise them about a possible stake sale deal.

"We wanted to understand the issues that have impacted Indian civil aviation," Hogan said.

The company in its annual results posted a 200 percent increase in its net profit in 2012 and a 17 percent growth in revenues.

Abu Dhabi-based Etihad posted a net income of $42 million last year compared to $14 million.

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