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Jet, Kingfisher surges 17% in morning trade

Jet, Kingfisher surges 17% in morning trade
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First Published: Tue, Oct 14 2008. 11 24 AM IST
Updated: Tue, Oct 14 2008. 11 24 AM IST
PTI
Mumbai: Shares of Jet Airways and Kingfisher Airlines today surged as much as 17% on the Bombay Stock Exchange, a day after the private carriers announced an alliance to meet the challenges of downturn in the aero-space.
Jet Airways opened at Rs315, touched an intra-day high of Rs340, up 17.24% over previous close. Over 48,000 shares changed hands on the BSE.
The scrip, which touched a 52-week low of Rs255 yesterday, gained momentum today after both the airlines joined hands for sharing of their network and resources.
Yesterday, both Naresh Goyal of Jet and Vijay Mallya of Kingfisher said that the alliance was in tune with the global practice of reducing killing costs and clarified that there was no equity involvement.
“Both the parties recognise economic realities and benefits of the alliance... it is a meeting of both mind and heart,” Mallya said.
Further, Kingfisher Airlines surged 16.85% to touch an intra-day high of Rs60. The scrip had opened firm at Rs54 and over 2.16 lakh shares changed hands on the BSE.
The alliance would bring the two airlines, which account for nearly 60% of market share, to work together on seven fronts, including route and code sharing as also sharing of crew, a move that would help them cut exorbitant cost that had been putting enormous pressures for the last 4-6 years.
Similar movements were witnessed on the National Stock Exchange where Jet Airways opened at Rs300, touched a high of Rs344.40 and over 97,000 shares got traded.
Meanwhile Kingfisher opened at Rs54.50, and touched a high of Rs60 and over 6.78 lakh shares changed hands on NSE.
Shares of Jet Airways were later trading at Rs318, up 9.66%, while Kingfisher was up 9.06% at Rs56 in the early morning trade on the BSE.
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First Published: Tue, Oct 14 2008. 11 24 AM IST