New Delhi - QNA
The Indian government has given its approval for Jet Airways to sell a 24% stake to United Arab Emirates-based Etihad Airways, officials said Friday. The approval will result in foreign investment of 20.6 billion rupees ($332 million), the government said in a statement after a cabinet decision in New Delhi yesterday. India modified airline ownership rules last year, Times of India reported. Abu Dhabi-based Etihad agreed in April to buy a 24% stake in India\'s biggest publicly traded carrier as it seeks access to a market where passengers are forecast to triple to 452 million by 2020. The $330 million deal announced six months ago by the companies was awaiting regulatory approval after concerned authorities raised objections over the proposed share-holding pattern and effective control of Jet Airways following the deal. Rising travel has prompted both Singapore Airlines Ltd. and AirAsia Bhd. to tie up with Mumbai-based Tata Group this year to set up ventures in the South Asian nation. It is the first major foreign investment in an Indian airline after the government changed rules in September 2012 to allow foreign carriers to own stake of up to 49 per cent in domestic airlines.