Jet Airways rallies ahead of FIPB meet; up over 15% in 2 days

NEW DELHI: Jet Airways Ltd surged over 8 per cent in trade on Friday ahead of the crucial Foreign Investment Promotion Board (FIPB) meet, which will decide on the Rs 2,058 crore Jet-Etihad deal, the largest foreign investment in the Indian aviation sector.

Jet Airways finally closed 8.4 per cent higher at Rs 469.20. It hit a low of Rs 443.70 and a high of Rs 472.40 in trade today. The stock has rallied over 15 per cent in a matter of two trading sessions in anticipations of positive outcome from the FIPB meet.

The stock closed 9.4 per cent higher at Rs 471.45 on the National Stock Exchange.

Jet Airways also appointed Gary Kenneth Toomey, a veteran in the aviation industry as its new Chief Executive Officer, nearly two months after the airline's deal with Gulf carrier Etihad.

According to industry experts, the deal would give Etihad a bigger platform in India, and provide Jet Airways with much needed cash to retire its debt.

Jet Airways plans to sell 24 per cent stake to Abu Dhabi-based Etihad.

For the quarter ended on March 31, 2013, Jet reported a net loss of Rs 495.53 crore against Rs 298.12 crore for the same period a year ago.