Jet Airways up 4% ahead of FIPB meet on Etihad deal

Moneycontrol Bureau

Jet Airways shares rose around 4 percent to Rs 449 ahead of today foreign investment board meet to clear the deal in which Abu Dhabi's Etihad has picked up 24 percent stake in the airline.

The Jet-Etihad deal is touted as the largest and first foreign investment in the Indian aviation sector after the government permitted FDI in the industry last year.

Once the Jet-Etihad proposal is cleared by the Foreign Investment Promotion Board (FIPB), it will go to the Cabinet Committee on Economic Affairs (CCEA) for final clearance as the deal size exceeds Rs 1,200 crore.

The Jet-Etihad deal assumes significance in the backdrop of government efforts to attract more foreign investments into the country. Also, the proposal comes after foreign carriers were allowed to pick up stakes in domestic airlines.

In March, the FIPB had cleared the Rs 81-crore investment proposal of AirAsia to set up a JV airline company with Tata Sons and another partner.

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

Read This: FIPB to take up Jet-Etihad, Telenor FDI proposals on Friday