Vijay Mallya-promoted Kingfisher Airlines may reportedly surpass Jet Airways in the race for a strategic alliance with Abu Dhabi-based Etihad Airways.

Both Kingfisher Airlines and Jet Airways have been trying to woo Etihad for a stake sale since the government of India opened up its civil aviation sector for foreign investors.

According to aviation industry sources, Jet Airways had been well ahead of Kingfisher in the race for an alliance with Etihad till recently but Kingfisher would likely hit the finishing line first. Sources added that Kingfisher would provide a better deal than Jet Airways' proposition of parting with a minority stake.

However, a Kingfisher official said that Etihad was in talks with both Kingfisher and Jet Airways, and it could announce its partner within two weeks.

Speaking on the topic, the official said, "Etihad is in talks with Kingfisher as well as with Jet Airways. and if we go by what James Hogan (Etihad CEO) said recently, we are expecting Etihad to announce the Indian partner within two weeks."

On Tuesday, there were reports that Etihad was ready to acquire 48 per cent stake in Kingfisher for Rs 3,000 crore. The reported figure values the debt-laden carrier at Rs 5,600 crore, nearly four-&-a-half times more than its existing market value of around Rs 1,261 crore.

Etihad has equity stakes in a number of airlines, including airberlin, Air Seychelles, Aer Lingus and Virgin Australia.