Moneycontrol Bureau
Shares of Jet Airways soared 11 percent intraday on Thursday as Abu Dhabi-based Etihad Airways got Competition Commission of India's (CCI) approval for purchase of 50.1 percent stake in Jet Privilege Private Ltd (JPPL), a customer loyalty programme unit of Jet Airways.
Clearing the transaction by majority, CCI said that the deal was unlikely to have any adverse impact on market competition, as Etihad's purchase of 24 percent stake in Naresh Goyal-led Jet Airways has already been approved and the two carriers were already partners in their respective frequent flyer programmes.
CCI said, "Considering that Jet and Etihad are already frequent flyer partners and the Commission had approved their earlier combination... Etihad's acquisition of 50.1 percent stake in JPPL is not likely to raise any appreciable adverse effect on competition."
Jet and JPPL have entered into a 'Slump Sale Agreement' and 'Commercial Agreement' on November 19, 2013 for the purpose of hiving-off the airline's loyalty business into JPPL and to establish a commercial relationship between them.
CCI was approached for its clearance by Jet and Etihad for this frequent flyer business deal on December 18, 2013. CCI asked them on December 24 to remove certain defects and provide additional information by January 2, 2014. After seeking extension of time, Etihad filed its response on January 13, 2014, CCI said.
At 10:34 hrs Jet Airways was quoting at Rs 232.55, up Rs 21.20, or 10.03 percent.
(With inputs from PTI)
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