Etihad Airways has confirmed it is to pay $379 million for a 24% equity stake in Jet Airways.
As part of the deal, it will inject $220 million in the Indian airline to create and strengthen a "wide-ranging partnership" between the two carriers.
It will also spend $70 million to buy Jet Airways’ three pairs of Heathrow slots through the sale and lease back agreement.
Jet Airways continues to operate flights to London utilising these slots.
Under the strategic partnership, which will be subject to regulatory and shareholder approval, the airlines will gradually expand existing operations and introduce new routes between India and Abu Dhabi.
They will combine their network of 140 destinations, with Jet Airways establishing a gateway in Abu Dhabi.
A key component of the wide-ranging partnership is expanded code sharing on flights with passengers benefiting from reciprocal ‘earn-and-burn’ rights on the airlines’ frequent flyer programmes.
