According to several reports in the media, the much anticipated alliance deal between Jet Airways and Etihad might be finalised as soon as tomorrow.

There are indications that the board of directors of Jet Airways will meet tomorrow to finalise the deal to partner with the Middle East airlines. Civil Aviation Minister Ajit Singh confirmed reports on Thursday saying that Etihad Airways is holding discussions with Jet Airways for a potential investment in the Indian aviation company.

He did not announce more details of the deal and only said that the government will ensure that the deal is complaint with the regulatory framework in the country. He was speaking in the aftermath of a meeting with Jet Chairman Naresh Goyal and Etihad Chief Executive James Hogan.

Hogan, the Chief Executive Officer of national airline of the United Arab Emirates (UAE) said that the company is looking to have a presence in the Indian market. He did not mention Jet Airwaysi n his remarks but it is believed that Etihad might be looking for a minority stake in the airline.

The central government in India has given a go ahead to investments by foreign aviation firms in Indain carriers. Airlines in the country are facing a low level of liquidity and have asked the government to speed up reforms in order to allow foreign airlines to invest in domestic aviation firms. The Indian aviation firms are struggling with high cost of fuel as well as airport and other taxes, which are among the highest in the world.