Etihad Airways' deal to buy a 24 per cent stake in Jet Airways has been formally approved by India's foreign investment regulator.
The conclusion of the £248 million deal comes ten months after the Indian government relaxed restrictions on foreign investment in its airlines.
Air links between the Gulf and India are set to improve as a result.
Foreign carriers are now permitted to buy stakes of up to 49 per cent in India's airlines and Etihad, which is based in the United Arab Emirates, is the first overseas investor to take advantage of the less stringent legislation.
Earlier this year, the Gulf carrier purchased loss-making Jet Airways' slots at Heathrow Airport for £45 million (see online news, February 27).
The three pairs of slots will be leased back to the Indian carrier, which will continue to operate its London services.
In a statement at the time, an Etihad spokesperson said: "The deal further strengthens the existing commercial relationship, which came into effect in July 2008, making provision for code-sharing between the two airlines."
The acquisition adds to recent Etihad investments in airlines including Air Berlin, Air Seychelles and Aer Lingus.
etihadairways.com, jetairways.com
Graham Smith
