Shares of Indian carriers surged in early trades on Tuesday, after the aviation ministry said it would recommend that the government allow foreign airlines to buy stakes of up to 49% in Indian airlines.
At 9:16 am, Jet Airways was up 6.22% at Rs 249.55, Kingfisher Airlines up 5.98% at Rs 26.60 and SpiceJet up 7.38% at Rs 24.
India currently bars foreign airlines from buying into Indian carriers, although foreign investors are allowed to hold a cumulative 49%.
India's loss-making airlines are grappling with high jet fuel prices, low fares, and an economic slowdown. A government decision that is widely expected to open up the sector to foreign carriers would be a lifeline to domestic carriers.
