Shares of Jet Airways on Thursday shot up by over 11% after Abu Dhabi-based Etihad Airways got Competition Commission's approval for purchase of 50.1% stake in Jet Privilege Private Ltd (JPPL), a customer loyalty programme unit of the Indian carrier.
After making a strong opening, Jet Airways' scrip further soared 11.37% to Rs 235.40 on the BSE.
On the NSE, the stock climbed 11.35 per cent to Rs 235.80.
Clearing the transaction by majority, CCI on Wednesday said that the deal was unlikely to have any adverse impact on market competition, as Etihad's purchase of 24% stake in Naresh Goyal-led Jet Airways has already been approved and the two carriers were already partners in their respective frequent flyer programmes.
Under such customer loyalty programmes, airlines generally offer certain benefits to their frequent flyers.
Under this deal, Etihad will acquire 50.1% stake in JPPL subsequent to the hiving off of Jet's loyalty business into the subsidiary on a going concern basis.
However, valuation of this deal has not been disclosed.