Jet, Etihad top-brass meet Ajit Singh

Top Etihad Airways and Jet Airways executives on Thursday met Civil Aviation Minister Ajit Singh here amid the possibility of the Abu Dhabi-based carrier picking up 24 per cent stake in the premier Indian airline.

The Etihad delegation was led by its CEO James Hogan at the meeting, which was also attended by Jet Airways promoter Naresh Goyal.

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While neither Hogan, nor Goyal spoke about the meeting, Singh said both airlines have been "in consultation (over possible stake sale). So the Etihad delegation was here today. They were discussing details with Goyal."

Replying to questions, the minister said, "Any foreign airline investing money has many concerns -- what's the policy, what's the cost structure (so that) you make money out of that. They have been discussing this deal for over a month. Since the government allowed FDI (by airlines), talks have been going on."

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Asked by when the deal would be finalised, Singh merely said, "It is up to them." He said whatever agreement was arrived at between the two carriers "should be within the regulatory framework."

The government changed its FDI policy in aviation in September last year to allow foreign airlines to acquire up to 49 per cent stake in an Indian airline.

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Earlier this month, Jet had informed the Bombay Stock Exchange that it was in talks with Etihad "regarding a potential investment...The discussions are in progress but no terms have been firmed up at present. Various structures are being explored by the legal and commercial teams."

Reports have said that Etihad may buy 24 per cent equity in Jet Airways valued at about Rs 1,800 crore (Rs 18 billion).