Jet Airways soars with Etihad

Jet Airways is currently the top gainer on the BSE, up almost 5.5% at Rs.301 with an intra day high of Rs.305. Volumes are also pretty robust, rising over one times. Its 52-week high stands at Rs.543.50.

The stock is up because in an interview with a business news channel, Etihad Airways said that it is working on plans to infuse further capital into Jet Airways. It plans to increase its stake further in the company and said that shareholders will decide on the same though the company has not issued any application for approval for a stake hike with any ministry. Any stake hike by Etihad would require a nod from FIPB and aviation ministry.

Etihad paid Rs 2,057 crore for a 24% stake in Jet in Nov 2013 and infused Rs. 900 crore in Jet's frequent flyer programme, which was completed in March 2014. Thanks to Etihad’s cash infusion, Jet has been able to reduce its debt. And over the two years, the alliance has been able to add more flights between India and Abu Dhabi, expanding their code sharing partnership to include routes in Europe, the US and Africa. The alliance has also benefited Jet in marketing and the cargo business.