Etihad Buys Jet Air's Three Heathrow Slots - Wall Street Journal (India)

By ANIRBAN CHOWDHURY MUMBAI--Etihad Airways said Wednesday it has acquired three pairs of landing and departure slots at London's Heathrow airport from Jet Airways (India) Ltd. for $70 million. Under the agreement signed Tuesday, Jet Airways will lease back the slots and continue to use them for its London flights, Abu Dhabi-based Etihad said. Etihad said also its talks to make an investment in Jet Airways are progressing. Jet Airways has been in talks with Etihad for several months to sell a stake to the Middle Eastern carrier. Jet Airways executives weren't immediately available for comment. News of the London transaction raised hopes that the companies may soon sign a stake deal, and drove up the share price of Jet Airways. The shares closed more than 19% higher at 534.85 rupees on the Bombay Stock Exchange, where the benchmark index rose 0.7%. Tuesday's transaction may be part of the stake deal Jet Airways is planning with Etihad. Officials at India's aviation ministry had said that the local airline was looking to sell a 24% stake to Etihad for $300 million. But media reports have recently said the deal was stuck as Etihad wanted more representatives on Jet Airways' board than the Indian airline was willing to offer. In the past one week, the local carrier's stock had fallen 17%. India last September allowed foreign airlines to buy up to 49% stakes in Indian carriers. Earlier foreign investors, but not airlines, were allowed to buy up to that much stakes. The move was aimed at helping the local aviation industry which has been hit by high fuel prices, interest rates and tough competition. via Business - Google News http://news.google.com/news/url?sa=t&fd=R&usg=AFQjCNG9p1PWNnjJmlu3ttTxOqAIcIUgeQ&url=http://online.wsj.com/article/SB10001424127887324662404578329720772126896.html

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