Jet, Kingfisher surges 17 pc
Shares of Jet Airways and Kingfisher Airlines on Tuesday surged as much as 17 per cent on the Bombay Stock Exchange.business Updated: Oct 14, 2008 12:11 IST
Shares of Jet Airways and Kingfisher Airlines on Tuesday surged as much as 17 per cent on the Bombay Stock Exchange, a day after the private carriers announced an alliance to meet the challenges of downturn in the aero-space.
Jet Airways opened at Rs 315, touched an intra-day high of Rs 340, up 17.24 per cent over previous close. Over 48,000 shares changed hands on the BSE.
The scrip, which touched a 52-week low of Rs 255 on yesterday, gained momentum on Tuesday after both the airlines joined hands for sharing of their network and resources.
Yesterday, both Naresh Goyal of Jet and Vijay Mallya of Kingfisher said that the alliance was in tune with the global practice of reducing killing costs and clarified that there was no equity involvement.
"Both the parties recognise economic realities and benefits of the alliance... It is a meeting of both mind and heart," Mallya said.
Further, Kingfisher Airlines surged 16.85 per cent to touch an intra-day high of Rs 60. The scrip had opened firm at Rs 54 and over 2.16 lakh shares changed hands on the BSE.
The alliance would bring the two airlines, which account for nearly 60 per cent of market share, to work together on seven fronts, including route and code sharing as also sharing of crew, a move that would help them cut exorbitant cost that had been putting enormous pressures for the last 4-6 years.
Similar movements were witnessed on the National Stock Exchange where Jet Airways opened at Rs 300, touched a high of Rs 344.40 and over 97,000 shares got traded.
Meanwhile Kingfisher opened at Rs 54.50, and touched a high of Rs 60 and over 6.78 lakh shares changed hands on NSE.
Shares of Jet Airways were later trading at Rs 318, up 9.66 per cent, while Kingfisher was up 9.06 per cent at Rs 56 in the early morning trade on the BSE.