Jet Airways shares rally on approval for Etihad deal

MUMBAI (Reuters) - Shares in Jet Airways surged as much as 8 percent in early morning trade on Tuesday after the airline received conditional approval from the foreign investment regulator to sell a $379 million stake to Etihad Airways.

As of 9:28 a.m., the stock was trading 2.7 percent higher.

Etihad had first agreed in April to buy a 24 percent stake in Jet in the first such deal since the Indian government allowed foreign airlines to own up to 49 percent of Indian carriers last September.

Jet shares had gained nearly 22 percent over the previous two sessions on speculation the deal would be approved.

(Reporting by Himank Sharma; Editing by Rafael Nam)