Jet Airways shareholders have approved plans for Etihad Airways to take a major stake in the Indian carrier.
At an extraordinary general meeting in Mumbai, the shareholders agreed to allow Etihad to take a 24% holding in preferential shares.
The allotment of the shares is subject to fulfilment of certain conditions, including the approval of India’s Foreign Investment Promotion Board and the nation’s Competition Commission.
The two airlines signed their agreement in April, with Etihad paying $379 million for its shareholding as well as investing a further $220 million in Jet.
The deal gives Etihad a bridge into the rapidly-expanding Indian market. The agreement will bring expanded codesharing, integrated frequent flyer programs, plus new routes between India and Abu Dhabi.
Etihad CEO James Hogan has described the Indian market as “fundamental to our business model of organic growth partnerships and equity investments”.