Jet Air, Kingfisher, SpiceJet fly higher on FDI hopes

Moneycontrol Bureau

Shares of aviation companies climbed nearly 3% following news of Civil Aviation Minister Vayalar Ravi saying that his ministry is considering the recommendation of the Department of Industrial Policy & Promotion (DIPP) to allow foreign carriers to pick up stake in domestic airlines.

Ravi said that it will communicate the decision of allowing foreign airlines to pick up stakes in Indian carriers will be communicated to the DIPP shortly.

Meanwhile, while Jet Airways rose 2% at Rs 232.60 on the Bombay Stock Exchange at 9:22 hours, Kingfisher Airlines and SpiceJet too rose in the same range at around Rs 22.55 and Rs 22.40.

Airlines have been lobbying with the government for almost two years now to get foreign investment in the ailing sector that collectively reported losses of around Rs 10,000 crore in FY11.

Currently, foreign direct investment (FDI) is not allowed in airlines but carriers which have been posting losses in the past few financial quarters have been looking at foreign investors for a turnaround.