Jet Airways sells Heathrow slots to Etihad for $70 mn

Even as its deal to acquire stake in Jet Airways has hit a hurdle, Etihad Airways has concluded a deal to acquire three Jet Airways slots at London airport for $70 million.

"The purchase is part of a sale and lease back agreement signed on Tuesday.  Jet Airways will continue to operate flights to London utilising these slots,'' Etihad said in a statement today. Jet operates three daily flights to London (two from Mumbai and one from Delhi).

"The deal further strengthens the existing commercial relationship, which came into effect in July, 2008, making provision for code sharing between the two airlines. ,Etihad Airways continues to progress discussions about further investment in Jet Airways,'' the statement added.

The two airlines are negotiating a stake sale agreement involving the sale of 24% in Jet Airways to Etihad but the deal has been delayed due to concerns of Gulf airline over protection of its investment and its demands for greater management and operational control of the airline.