<p>Etihad Airways said on Wednesday that it has paid $ 70 million to buy three slots from Jet Airways at Heathrow airport in London. <br /><br /></p>.<p>In a statement issued, the UAE-based airways said, “Etihad Airways can confirm that it has concluded a transaction with Jet to purchase its three pairs of Heathrow slots for $70 million. The purchase is part of a sale and lease back agreement signed yesterday." <br /><br />The statement further said that Jet will continue to operate flights to London utilising these slots. The deal only strengthens the existing commercial relationship between the two airlines, which came into effect in July 2008, making provision for code-sharing, it said.<br /><br />The deal is seen as a step towards closing its proposed investment plan in Jet Airways. <br />The talks on proposed stake acquisition by Etihad in Jet Airways are still going on, sources said. <br /><br />It may be recalled that on the talk of 24 per cent proposed stake sale to Etihad, sources aver that they have agreed to cede more management control, including more board positions to Etihad. However, this could not be officially verified with either Jet or Etihad officials. <br /><br />Etihad, launched in 2003, is on a buying spree to compete with regional rivals Emirates and Qatar Airways. Etihad carrier has taken stakes in Virgin Australia and Aer Lingus and raised its shareholding in Air Berlin and Air Seychelles.<br /><br />Top executives from Etihad and Jet met Indian ministers earlier this month, but the deal faced a set-back later when the Gulf carrier's chairman told Reuters the deal needed to be revised.<br /><br />Jet shares have fallen more than 27 per cent since then through Tuesday. Etihad will have to find a way around Jet's complicated shareholding structure before a deal can be finalised.<br /><br />Tail Winds Ltd, the Isle of Man-based investment vehicle of Jet founder Naresh Goyal, currently holds 79.99 per cent of Jet Airways. According to Indian rules, foreign companies can hold a maximum 49 per cent stake in local carriers, but so-called non-resident Indians like Goyal are exempted.</p>
<p>Etihad Airways said on Wednesday that it has paid $ 70 million to buy three slots from Jet Airways at Heathrow airport in London. <br /><br /></p>.<p>In a statement issued, the UAE-based airways said, “Etihad Airways can confirm that it has concluded a transaction with Jet to purchase its three pairs of Heathrow slots for $70 million. The purchase is part of a sale and lease back agreement signed yesterday." <br /><br />The statement further said that Jet will continue to operate flights to London utilising these slots. The deal only strengthens the existing commercial relationship between the two airlines, which came into effect in July 2008, making provision for code-sharing, it said.<br /><br />The deal is seen as a step towards closing its proposed investment plan in Jet Airways. <br />The talks on proposed stake acquisition by Etihad in Jet Airways are still going on, sources said. <br /><br />It may be recalled that on the talk of 24 per cent proposed stake sale to Etihad, sources aver that they have agreed to cede more management control, including more board positions to Etihad. However, this could not be officially verified with either Jet or Etihad officials. <br /><br />Etihad, launched in 2003, is on a buying spree to compete with regional rivals Emirates and Qatar Airways. Etihad carrier has taken stakes in Virgin Australia and Aer Lingus and raised its shareholding in Air Berlin and Air Seychelles.<br /><br />Top executives from Etihad and Jet met Indian ministers earlier this month, but the deal faced a set-back later when the Gulf carrier's chairman told Reuters the deal needed to be revised.<br /><br />Jet shares have fallen more than 27 per cent since then through Tuesday. Etihad will have to find a way around Jet's complicated shareholding structure before a deal can be finalised.<br /><br />Tail Winds Ltd, the Isle of Man-based investment vehicle of Jet founder Naresh Goyal, currently holds 79.99 per cent of Jet Airways. According to Indian rules, foreign companies can hold a maximum 49 per cent stake in local carriers, but so-called non-resident Indians like Goyal are exempted.</p>