Jet Airways firms up on buzz Etihad deal might be finalised in a month

Meanwhile, the BSE Sensex was up 66.59 points, or 0.36%, to 18,797.75.

On BSE, 1.82 lakh shares were traded in the counter as against an average daily volume of 7.81 lakh shares in the past one quarter.

The stock hit a high of Rs 522.35 and a low of Rs 507.50 so far during the day. The stock had hit a 52-week high of Rs 688.30 on 28 January 2013. The stock had hit a 52-week low of Rs 275.10 on 16 May 2012.

The stock had underperformed the market over the past one month till 17 April 2013, sliding 13.34% compared with the Sensex's 3.58% fall. The scrip had also underperformed the market in past one quarter, falling 14.53% as against Sensex's 6.18% fall.

The mid-cap company has an equity capital of Rs 86.33 crore. Face value per share is Rs 10.

Reports suggested that the deal would inject much-needed funds into Jet Airways and help Etihad expand its reach into the vast Indian aviation market.

Etihad has been in talks for a strategic equity equity stake in Jet Airways ever since India relaxed ownership rules and allowed foreign airlines to buy up to 49% in local carriers.

Earlier, some media reports had suggested that the deal would be delayed at least until August 2013 due to concerns of past failed forays by Gulf investors into India and the Etihad's demands to protect its potential investment.

However, Etihad later said that it remained in talks with Jet and has been strengthening its business relations with the Indian airline.

Etihad Airways on 27 February 2013, said it has acquired three pairs of landing and departure slots at London's Heathrow airport from Jet Airways (India) for $70 million. Under the agreement signed on 26 February 2013, Jet Airways leased back the slots and continue to use them for its London flights. Etihad said also its talks to make an investment in Jet Airways are progressing. Jet Airways has been in talks with Etihad for several months to sell a stake to the Middle Eastern carrier.

Jet Airways (India) reported net profit of Rs 85 crore in Q3 December 2012 as against net loss of Rs 101.22 crore in Q3 December 2011. Net sales rose 6.6% to Rs 3941.39 crore in Q3 December 2012 over Q3 December 2011.

Jet Airways currently operates a fleet of 99 aircraft. It connects 20 international destinations and operates flights to and from 53 destinations in India.

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