Money» Etihad Deals Picks Up On Jet Airways Stocks
Etihad deals picks up on Jet Airways stocks
- Dec 04, 2012, 13:55 PM IST
New Delhi: Indian carrier Jet Airways has been recieving a positive response on the stock market, ever since there has been news of the deals with Etihad Airways. The price for Jet's stocks surged 7% to a 52-week high level of Rs 594 on the NSE Nifty, while the BSE Sensex showed the stock climb 6.13% to land at around Rs 590. There have also been some reports in the media to suggest, that the executives of the company have flown to the UAE to take the deal forward with the team from Etihad Airways.
Jet Airways had so far termed all media reports to be speculative, hence declined to comment on the issue, but the buzz word has been very strong that a possible deal could come through. If all goes well, Etihad will gain access to one of the booming markets in the world, along with access to a variety of routes in the country. It would also mean that flyers from a number of cities in India, wouldnt have to change or stopover during their jounrey's to the Middle East or other destinations, which Etihad plies on.
The market segment however, will be a different one for Etihad, because traditionally they have been luxury airliners, where Jet Airways have been mass transit airliner. If Etihad manages to get the volumes in India, their costing and value prosition will certainly change in future.
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