India's Jet Airways has formally confirmed that it is in discussions with Etihad Airways regarding a possible investment by the Middle Eastern carrier.
Sources had told Flightglobal in December that the two sides were negotiating a tie-up. While Jet has not stated the size of the shareholding involved, the sources had indicated a stake of 24% was in play.
Jet Airways says the talks over a "potential investment" have "commenced recently" in line with liberalised policies enabling foreign investment in the shares of Indian carriers.
"The discussions are in progress but no terms have been firmed up at present," Jet Airways says.
"Various structures are being explored by the legal and commercial teams and care [is] being taken to ensure that all the Indian regulatory requirements are fully complied with."
Jet says that, at this stage, it "cannot" give a firm timeframe regarding progress of the negotiations, given the "complexity" of such transaction talks and the associated regulatory structures.
But it adds: "Since no agreement has been reached with Etihad as yet, no regulatory approvals have been sought at present. An appropriate announcement shall be made upon finalisation of the terms of the investment with Etihad."
Embattled Kingfisher Airlines had also been in similar talks with Etihad.