Etihad Airways to buy 27.3 mn shares in Jet

New Delhi: Jet Airways board approves issuing about 27.3 mln shares to Abu-Dhabi based Etihad Airways, a news wire has reported.

Talk of a possible stake sale has been doing the rounds for over six months now, ever since the government allowed foreign airlines to pick up 49 percent shares in domestic carriers.

The reports of a possible stake sale also pushed the scrip of Jet Airways and it touched a 52-week high Dec 17.

The government earlier allowed foreign airlines to invest up to 49 percent in private domestic carriers. The foreign carriers have so far not been allowed to directly invest in Indian carriers for security reasons although 49 percent FDI by non-airline players was allowed.

The Indian civil aviation sector has been going through a tough operating environment with high fuel and interest costs hurting it. The government expects that the decision will help bring in more funds to the airlines that have been cold-shouldered by banks.

PREETI CHAUHAN

PGDM 2nd sem