Etihad acquires Jet Airways' slots at London's Heathrow airport ahead of stake buy

Abu Dhabi's Etihad Airways has bought out three pairs of Jet Airways slots at London's Heathrow airport, for $70 million, ahead of its proposed stake acquisition in the Indian Carrier.

Etihad said the acquisition of the slots was part of the deal and that Jet would continue to operate flights to London using those slots under a "sale and lease-back" agreement.

A slot is the scheduled time of arrival or departure made available to an airline to operate regular flights.

The slot transaction also confirms Ethihad's impending purchase of a 24-per cent stake in Jet Airways.

Etihad Airways continues to "progress discussions about further investment in Jet Airways," the Gulf airlines said in a release.

Investors cheered the deal, which signalled positive developments in stake-sale talks between the two airlines.