Jet Airways-Etihad deal to be completed by the end of 2013
Jet Airways is projecting to complete a USD334 million share sale to Etihad Airlines by the year's end. This was confirmed by the Indian airline through a statement after reporting its second quarterly loss.
For the last six years though, the Indian budget carrier had been losing money. It is now in the process of awaiting approvals from the Indian antitrust regulatory authorities for the deal's approval. According to Jet Chief Financial Officer Ravishankar Gopalakrishnan, it is on course to complete the transaction within the quarter.
After the announcement of the quarterly loss, an Etihad spokesman had declined to provide any comment as to the possible effect of the loss on the share sale. The said sale was cleared by the Indian cabinet earlier this month. The said capital infusion is to help Jet move forward from its cyclical pattern of losses sustained in the domestic airline business.
The said loss increased to INR8.91 billion or USD145 million in the three months prior to September 30. A year earlier, the losses sustained had amounted to INR997 million.