India's government to consider Jet-Etihad approval on 29 July

This story is sourced from Pro
See more Pro news »

India's foreign investment promotion board (FIPB) will likely make a decision on the proposed Jet Airways stake sale to Etihad Airways in a meeting set for 29 July.

The $379 million deal, which was first announced in April, is listed on the agenda for the next FIPB meeting, according to a posting on the board's website.

The FIPB first considered the proposal at a meeting held on 14 June, but deferred its decision because of concerns raised by some government agencies that the deal would result in substantial control of the Indian carrier being transferred to Etihad.

Media reports claim that a proposal by Etihad to take three out of seven seats on Jet's board has been the key sticking point.

While the FIPB could approve the decision at the meeting, it will still require formal ratification by the country's finance minister before the deal can be considered as approved.

A Jet spokesman recently told Flightglobal Pro that the two carriers are working to secure all the necessary approvals for the deal before they reach a "long-stop" deadline of 31 July as stipulated in its agreement.