Jet Airways shares fall 6% as Etihad deal hits 'air pocket' - NDTV

Shares in Jet Airways fell by as much as 6 per cent on Tuesday on reports that Gulf carrier Etihad Airways' proposal to buy 24 per cent stake in India's second largest carrier has hit a stumbling block. Sources have told NDTV that in mid-June an official in the Prime Minister's Office (PMO) wrote a letter to Civil Aviation Minister Ajit Singh stating that the PMO was not in favour of giving away additional seats to Abu Dhabhi, whose national carrier is Etihad. Jet Airways shares traded 4 per cent lower at Rs 447.30 on the BSE as of 09.18 a.m. after hitting as low as Rs 438 in early trades. The stock underperformed the broader BSE Sensex, which traded 0.14 per cent lower at the same time. Earlier, Janta Party president and MP Subramanian Swamy had written to the Prime Minister alleging that the government of India agreed to give away 36,400 additional seats to Abu Dhabhi over the next three years only to facilitate the Jet-Etihad deal. Mr Swamy called the bilateral deal a sweetener for the Jet-Etihad deal. Both Jet-Etihad deal and the bilateral got concluded on the same day. Jet Airways says that no special favours have been extended to them. A spokesperson for Jet Airways said last month, "It is unfortunate that these kind of baseless allegations are being levelled against the first successful FDI in the Aviation Sector." Mayuresh Joshi of Angel Broking told NDTV that the deal has hit an air pocket right now and this is being reflected in the stock price. However, Mr Joshi was confident that the deal will go through. The Rs 2,058 crore Jet-Etihad deal was seen as a big boost for Jet, which has been struggling under huge debt and interest costs burden.   via Business - Google News http://news.google.com/news/url?sa=t&fd=R&usg=AFQjCNEXMdu2XHbTxxGhfpuYgJaTwi4u1w&url=http://profit.ndtv.com/news/market/article-jet-airways-shares-fall-6-as-etihad-deal-hits-air-pocket-323972

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