The airline's shares jumped as much as 19 per cent.Etihad Airways PJSC has agreed to raise its stake in Jet Airways to 49 per cent as founder and chairman Naresh Goyal gives up majority control of carrier, potentially paving way for rescue of cash-starved company, according to television reports.BTVI television channel reported Etihad stake increase Monday, while CNBC-TV18 said Mr Goyal's stake could drop to as low as 20 per cent from 51 per cent after revamp, and his voting rights would be capped at 10 per cent.
The airline didn't immediately respond to an email seeking comments.The airline's shares jumped as much as 19 per cent in Mumbai, biggest intraday gain since November 15, before ending 15.7 per cent higher for day.
The broader SP BSE Sensex index finished down 0.4 per cent.Jet Airways, once country's number 2 airline, has been seeking funds from investors including minority shareholder, people with knowledge of matter said last week.
The Mumbai-based airline, which hasn't seen a profit in nine of past 11 fiscal years, has held no talks or made any decision that requires a stock market disclosure, it said in a filing before report on Mr Goyal stepping down.BTVI earlier said Etihad, which currently holds 24 per cent in Jet Airways, is likely to have more say in operations and management of beleaguered carrier.
Government's regulations cap ownership of local airlines by foreign carriers at 49 per cent.