Etihad Airways has concluded a transaction with Jet Airways to purchase the Indian carrier’s three pairs of London Heathrow airport slots for $70 million.
The purchase is part of a sale and lease back agreement signed on February 26, 2013. Jet Airways will continue to operate flights to London using these slots.
The deal further strengthens the existing commercial relationship, which came into effect in July, 2008, making provision for codesharing between the two airlines.
It has been reported that Etihad Airways is seeking a revision to its deal to acquire a 24% stake in Jet Airways since Etihad chairman Sheikh Hamed bin Zayed al-Nahyan stated to Reuters that there was a need to revise the deal although he did not specifying why.
Jet has so far only confirmed that negotiations are in progress and that no terms have been firmed up at present. “Various structures are being explored by the legal and commercial teams and care being taken to ensure that all the Indian regulatory requirements are fully complied with,” Jet said.
In a statement announcing the LHR slot purchase, Etihad Airways only confirmed that it “continues to progress discussions about further investment in Jet Airways”.
Etihad Airways buys Jet Airways LHR Slots
