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Earlier this week, the two airlines got a clearance from the country's markets regulator. It is yet to get a nod from a government body that regulates competitive practices in the industry.
A senior executive at the airline told ET, it will later this month announce a detailed expansion plans which includes connecting 20 Indian cities to its partner's global hub Abu Dhabi.
On April 24, Jet announced it plans to sell 24% stake Abu Dhabi-based Etihad for $379 million. The deal followed the government's decision last September to allow foreign airlines to buy up to 49% stake in Indian carriers.
The deal will give the airline much needed cash to retire debt and buy plans as well as access to Etihad's vast global network. Etihad will gain a stronger foothold in India to wean passengers away from its competitors Emirates and Qatar Airways.
After announcing the deal, the airline immediately implemented its long pending change in shareholding pattern so that public shareholding could go up to at least 25%. The airline's chairman Naresh Goyal held less than 1% in it while the holding company Tailwinds held about 80% with the remaining shares held by the public. Goyal currently holds about 66% while Tailwinds has just over 9%. After the deal Goyal will hold 51%, Etihad 24% while the rest will be with the public.
But the deal ran into further hurdles as the government found issues in Jet-Etihad's shareholding agreement, saying it would give away considerable powers to the minority partner.
In June Jet implemented three key changes in the agreement, the most important of them being to cut Etihad's nominees on Jet's board to two from three. Recently, the airline made further changes to the proposal according to suggestions from the FIPB.
Meanwhile, Etihad recently announced major expansion plans in India.
From November 1, the airline plans to triple the number of seats it now offers between Mumbai-Abu Dhabi and New Delhi-Abu Dhabi, it said.
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