Jet Airways rallies over 7% as cabinet approves Etihad's stake buy

NEW DELHI: Jet Airways Ltd rallied as much as 7.2 per cent in morning trade on Friday, a day after the Union Cabinet cleared Jet Airways' proposed sale of 24 per cent equity to Abu Dhabi-based Etihad, days after the Rs 2,058 crore deal got regulatory clearances.

At 09:35 a.m.; Jet Airways pared some of the morning gains and was trading 5.2 per cent higher at Rs 406.90. It has hit a low of Rs 397 and a high of Rs 414.70 on the Bombay Stock Exchange.

The stock was trading 4.6 per cent higher at Rs 404.50. It has hit a low of Rs 396.70 and a high of Rs 414.60 in trade on the National Stock Exchange.

More than five months after it was announced, the Cabinet Committee on Economic Affairs (CCEA) on Thursday cleared Etihad Airways’ Rs 2,058-crore investment in Jet Airways.

Earlier this week, the two airlines got a clearance from the country's markets regulator. It is yet to get a nod from a government body that regulates competitive practices in the industry.

A senior executive at the airline told ET, it will later this month announce a detailed expansion plans which includes connecting 20 Indian cities to its partner's global hub Abu Dhabi.

The deal will give the airline much needed cash to retire debt and buy planes as well as access to Etihad's vast global network. While Etihad will gain a stronger foothold in India to wean passengers away from its competitors Emirates and Qatar Airways, say analysts.