DLA Piper has advised Etihad Airways on its investment of US$379 million in a 24% stake in Jet Airways as part of an extensive strategic alliance between the two airlines. This is the first investment by a foreign airline in an Indian airline since the Indian government liberalised its rules for the Indian aviation sector in September 2012.

The balance of Etihad's US$600 million overall strategic investment in Jet comprises a US$70 million purchase and leaseback of Jet Airways' three pairs of Heathrow Airport landing and take-off slots which was announced in February and, subject to appropriate regulatory and corporate approvals, Etihad will invest US$150 million in a significant equity investment in Jet Airways’ frequent flyer program "Jet Privilege".

The DLA Piper team was led by partners Jon Hayes and Dr. Benjamin Parameswaran with legal director Ciaran Stone. Partners Mark Franklin, Alexandra Kamerling and Jan Dreyer, Graham Tyler and Sarah Day led respectively on regulatory, competition, and finance aspects of the transaction.

Jon Hayes commented: "We salute Etihad's strategic vision as it enters into this very significant and innovative deal with a key player in the increasingly important Indian market. Following on Etihad's significant investment in air berlin in December 2011 (on which DLA Piper also acted), the Jet Airways transaction has again demonstrated our international capabilities, our pre-eminent specialist aviation credentials and our broad ranging commercial expertise, as well as showcasing the capabilities of DLA Piper's India Group. It is always our great pleasure to work with the senior management team at Etihad and we have also much enjoyed our close collaboration with Cyril Shroff and his excellent team at Amarchand & Mangaldas & Suresh A. Shroff & Co who acted as Indian counsel to Etihad."

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