Etihad Airways has won approval to take a 24% stake in Indian carrier Jet Airways for $380 million.

The green light by India’s Foreign Investment Promotion Board came after the Abu Dhabi carrier reportedly agreed to a number of concessions.

These include reducing the number of seats it would hold on the Jet Airways board and reassurance that control of the airline would remain with domestic shareholders, the Financial Times reported.

The Press Trust of India quoted India’s civil aviation minister Ajit Singh as saying that if the two airlines “at any time make changes in shareholding pattern, they have to get permission from the Indian government agencies”.

He added: “All our concerns about effective management, control and place of business have been resolved.”

The deal, initially announced in April, must still be approved by India’s cabinet committee on economic affairs and the competition commission, both of which are considered formalities.

It is likely to be followed by New Delhi giving the go-ahead to Malaysian budget carrier AirAsia to set up an Indian airline in partnership with the Tata group.