Jet Airways soars 7% on CCEA's nod to Etihad deal

Moneycontrol Bureau

Shares of Jet Airways continued to rally, taking the stock up 7 percent in early trade Friday on final nod from the cabinet committee on economic affairs (CCEA) for the deal with Etihad Airways.

The stock gained nearly 19 percent in four consecutive trading sessions.

Earlier, market regulator Securities and Exchange Board of India (Sebi) approved the Jet Airways' proposed sale of 24 percent stake to Abu Dhabi-based Etihad Airways.

As per the norms, Jet promoter Naresh Goyal would eventually have a 51 percent stake in the company, Etihad 24 percent and the public remaining 25 percent.

Analysts feel the approval was on expected lines. Kapil Kaul of Center for Asia-Pacific Aviation (CAPA) believes the Jet-Etihad deal is unlikely to face further hurdles in its operations except if a PIL filed against it in the Supreme Court.

Speaking to CNBC-TV18, Kaul says the deal may lead to competition in the international airfares as it will be focusing more on the international operations of Abu Dhabi and is unlikely to affect the domestic market.

At 10:12 hrs Jet Airways was quoting at Rs 402.15, up Rs 15.55, or 4.02 percent.