Etihad Airways (EY, Abu Dhabi International) is reportedly talking to the Emirati sovereign wealth fund Mubadala over its potential participation in the rescue of Jet Airways (JAI, Mumbai International), Moneycontrol has reported.
The fund could take a 20% stake in the currently grounded Indian carrier. Etihad itself previously said it was only willing to take up to 24.9%, up from the current 24%, due to the Indian financial market laws which would oblige the Emirati airline to make an open offer for the remaining shares once it crosses the 25% threshold.
The Indian government-backed National Investment and Infrastructure Fund (NIIF) is also considering taking a stake in the airline. The Hinduja Group, an industrial conglomerate, is currently the front-runner to become the lead private investor in the consortium.
Jet Airways has been grounded since mid-April and has already lost most of its aircraft. The Indian Directorate General of Civil Aviation (DGCA) reallocated the carrier's slots at Mumbai International and Delhi International but said that it was willing to return them to Jet if it restarts.
