Jet Airways takes-off on back of a possibility of a stake sale

The stocks of Jet Airways was buzzing on the bourses and ranked among the top gainers on BSE. The market was reacting to the buzz that Jet Airways' Abu Dhabi-based partner Etihad Airways is looking to increase stake in the company.

Etihad Airways plans to increase stake from the current 24 per cent to the maximum permissible 49 per cent, according to news reports. Tata Group has also shown interest in investing in the airline, but the bitter rivalry between Goyal and the Tatas seemed to elude a deal. The other contender for a stake in Jet Airways is a consortia of Air France, KLM and Delta.

According to government guideline for foreign direct investment (FDI), the management control of Indian airline should remain with the Indian investor. If Etihad and Tata Group join hands a deal to save the debt-ladden Jet Airways could proceed.

Although, Jet Airways has declined to comment specifically on these negotiation, time and again the company has reiterated that it is in active discussions with various stakeholders and investors to finance its operations as well as secure long-term growth.

Offlate, the company's board has seen major reshuffling. On Monday, Robin Kamark was appointed as nominee director of Etihad Airways PJSC replacing Harsh Mohan. Also independent directors, Ranjan Mathai, a former diplomat and Shell CEO Vikram Singh Mehta resigned from the board recently.

Meanwhile, at 11:26 hours, the stock of Jet Airways was buzzing on the bourses, and quoting Rs. 316.10 per share, up by Rs. 22.55 or 7.68 per cent. The stock opened at Rs. 294.00 per share and hit and intraday high of Rs. 319.80 per share on BSE.