Jet Airways Ltd. is better positioned than the beleaguered Kingfisher Airlines Ltd. in the battle to win funds from Etihad Airways, analysts believe.

Both Indian carriers have been in talks with Gulf carrier Etihad to raise funds through a stake sale, but analysts say that Jet Airways' network, domestic market share and a codeshare accord with the Gulf carrier may help it seal a deal.

On the other hand, debt-laden Kingfisher Airlines stopped its flying operations in October this year and had its flying license suspended by civil aviation regulator DGCA. The beleaguered carrier owes around Rs 7,000 crore to a consortium of 17 banks. State Bank of India, India's biggest public sector bank, alone has an exposure of about Rs 1,500 crore to the grounded carrier.

Arun Kejriwal, director at Kejriwal Research and Investment Services Private Limited, "For Etihad, tying up with Jet makes more sense. It's an airline that is in business and also flies to the Middle East. They can have a new hub."

A stake purchase by the Gulf carrier may attract more investors to India's civil aviation industry. Aviation companies are currently struggling with high costs and a price war, amid investors' repulsion.

Neither Jet Airways nor Kingfisher Airlines responded to emails seeking comments on their talks with the Gulf carrier. However, Abu Dhabi-based Etihad is expected to announce its India partner as soon as the end of this week.