Etihad Airways has spent $70 million to acquire three Heathrow slots from Indian airline Jet Airways.
The Abu Dhabi-based carrier announced the deal today (February 27) and said that the slots would immediately be leased back to Jet Airways which will continue to use them for its services to India. Jet currently flies twice daily to Mumbai and once per day to Delhi.
Reports in India suggest that the move is the first step in Etihad taking a formal stake in the Indian airline. Shares in Jet Airways rose by as much as 20 per cent following Etihad’s announcement of the slots deal.
Etihad said in a statement: “The deal further strengthens the existing commercial relationship, which came into effect in July, 2008, making provision for codesharing between the two airlines.
“As previously advised, Etihad Airways continues to progress discussions about further investment in Jet Airways.”
Buying into Jet Airways would continue Etihad’s recent strategy of acquiring minority shareholdings in other carriers. Etihad already has stakes in Air Berlin, Aer Lingus, Virgin Australia and Air Seychelles.