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The deal is Etihad's eighth stake in a foreign airline.
For Americans used to domestic flights, the first taste of a foreign airline can be a head-turner.
For a foreign airline to fly into the United States, it is not enough to meet safety standards.
The government will allow a foreign airline to hold up to a maximum 26percentt stake in the airline.
He cited a recent sale of 200 airplanes by Boeing to a foreign airline as a deal that would not have been signed without the bank's help.
But perversely, under current Indian law, the strategic partner cannot be a foreign airline, and neither of India's two main private airlines seems interested.
Similar(33)
A condition of Intesa Sanpaolo's plan is that a big foreign airline be brought in as a partner for the new Alitalia, and Mr Benetton recently said that such an alliance was vital for the project's success.
It won't consider any variation to the overall cap on foreign ownership of Qantas at 49%, it says, but would consider changes to the 25% limit on a single foreign investor or the 35% limit on ownership by a single foreign airline.
They said that a few foreign airlines, which they would not identify, were continuing to have some difficulty in meeting the requirements for what appeared to be technical, data-processing reasons.
The government announced Wednesday that it would remove a 25percentt restriction on individual foreign investors in Qantas and drop a 35percentt cap for total foreign airline holdings.
If the airline decides to shed some of its routes as part of a cost-cutting regimen, and those routes are shared with a foreign carrier, then the foreign airline could lose the route as well.
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