MUMBAI: A deal between Abu Dhabi's Etihad Airways and Naresh Goyal's Jet Airways BSE -5.53 % may take more time to consummate as the Middle Eastern carrier is considering revising the deal on offer. As the buzz got stronger that the much-talked-about deal was finally close at hand, and it was likely to be announced this week, Reuters flashed a statement that quoted Sheikh Hamed bin Zayed al-Nahayan, the chairman of Etihad Airways, as saying that Etihad Airways needed to revise the deal to buy a stake in Jet Airways and that it was too soon to say when a final agreement will be signed. 

A source at Jet Airways said Etihad is yet to complete its due diligence of Jet. "Any offer to be put up before the board of Jet Airways will come only after Etihad completes the due diligence," the Jet official said. 

In Abu Dhabi, the chairman of Etihad, who is also the managing director of sovereign wealth fund Abu Dhabi Investment Authority, was more forthcoming. Speaking on the sidelines of a defence exhibition, Sheikh Hamed, when asked if a Jet deal would be signed by March or April, said: "I don't know... We need to revise it." Asked if a Jet deal would be finalised soon, Sheikh Hamed said: "It's too early to decide." He, however, failed to elaborate why the deal needs to be revised. "We need to talk with the Indians about other issues ... including this," he told Reuters. 

Goyal, who is known to be a tough-asnails negotiator, is unlikely to yield ground easily, which explains why the deal, which was in the works since early September 2012, is taking so long. "Jet hopes that Etihad will complete the duediligence process by this week. There are issues relating to the board composition, a crucial issue for Etihad... The regulations are clear that the board majority has to be Indian nationals," a source at Jet told ET. 

"They (Etihad) want at least crucial posts such as chief financial officer to be of their choice in Jet. They might want a say in control of revenues and marketing too," the source added. 

Etihad officials are expected to meet Indian trade minister Anand Sharma this week in Abu Dhabi to discuss the deal. 

The terms of a possible deal have not been disclosed, but a government source said earlier this month Etihad was in talks to pick up a 24% stake in Jet for up to $330 million. Etihad, among the few global airlines to boast of deep pockets, is cash rich, but needs clearances from its executive committee for every investment they make. "It's a complex procedure and it is not done till now," the source added. 

The source even said that the size of the deal — $330 million for 24% stake in Jet — is not yet certain and could change as the contours of the deal are finalised. "The valuation of $330 million for 24% stake is not final yet," the source said. 

The FDI policy revised last year allows foreign airlines to buy up to 49% in the country's domestic carriers, many of which are facing stiff competition and high operating costs. Another hurdle that the two airlines are trying to cross is the routes that both airlines will fly. Jet Airways is keen to retain certain overseas routes with it.