Home >market >stock-market-news >Jet Airways shares soar on clearance for loyalty programme sale

Mumbai: The shares of Jet Airways India Ltd on Thursday rose as much as 10%, a day after the country’s second largest airline by passengers carried, secured approval from the Competition Commission of India (CCI) for the sale of its loyalty programme.

On Wednesday, the anti-trust regulator approved purchase of 50.1% stake in Jet Privilege Pvt. Ltd, Jet Airways’ loyalty programme, by Etihad Airways PJSC.

Clearing the transaction by a majority, CCI said that the deal was unlikely to have any adverse impact on market competition, as Etihad’s purchase of 24% stake in Naresh Goyal-promoted Jet Airways has already been approved and the two airlines were already partners in their respective frequent flyer programmes.

At 12.50pm, Jet Airways shares were trading at 232.15 on the BSE, up 9.84% from their previous close while the benchmark Sensex fell 0.41% to 20,178.14 points.

In November, CCI had cleared the 2,058 crore Jet-Etihad deal that involves Abu Dhabi-based Etihad Airways buying a stake in Jet Airways, the first such investment since the government allowed foreign airlines to invest in their Indian counterparts.

Jet Airways is scheduled to announce its third quarter earnings on Friday. The airline is expected to report 240 crore loss according to Bloomberg estimates.

Meanwhile, the shares of rival and low fare airline SpiceJet Ltd rose 0.95% to 16 a piece at 12.50pm on BSE following reports that the Chennai-based airline would place an order for 40 planes worth $4 billion.

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