Etihad Airways, the national carrier of the UAE, and Jet Airways Wednesday announced that the airlines closed the transaction for the subscription of a 24 percent equity stake by Etihad Airways in Jet Airways. All requisite Indian regulatory approvals had been obtained by Nov. 12.

Jet Airways has, on Nov. 20, issued and allotted 27,263,372 equity shares of a face value of Rs.10 Indian each at a price of 754.7361607 rupees per equity share on a preferential basis to Etihad Airways.

Consequent to the above allotment, the paid-up share capital of Jet Airways stands increased to 11,35,97,383 equity shares of Rs.10 each. Following this issue and allotment of the equity shares on a preferential basis to Etihad Airways, the UAE carrier holds 24 percent of the post issue paid-up share capital of Jet Airways (on a fully diluted basis). Additionally, James Hogan and James Rigney, being nominee directors of Etihad Airways, have been appointed as additional directors on the board of directors of Jet Airways as from Nov. 20.

Naresh Goyal, chairman of Jet Airways, said: “The infusion of foreign direct investment in the aviation sector will result in economies of scale, grow traffic at our airports, and create job opportunities. I am confident that this investment will greatly benefit all our stakeholders while significantly benefiting our customers who will now have access to a more expanded global network.”

Goyal also stressed that together with Etihad Airways, Jet Airways would enhance connectivity for tourists, business travelers, Indian families and the wider traveling public.

James Hogan, president and CEO of Etihad Airways, said: “India is one of the largest and fastest-growing markets in the world and a key part of the Etihad Airways growth strategy. Through this association, Etihad Airways and Jet Airways will both be strengthened, as will the economies of India and the UAE. By linking our two networks and adding new flights, new routes and more code-share options, travel to, from and within India will become much easier.”