NEW DELHI
: The Foreign Investment Promotion Board (FIPB) has cleared AirAsia-Tata Sons JV's investment proposal, reports Mrinalini Krishna of ET Now.
Earlier reports said that the aviation ministry is understood to have opposed the plan, saying the new FDI rules are meant for existing carriers only.
According to the finance ministry sources, AirAsia's application is very much in accordance with rules and there are no potential hurdles.
Following the news, aviations stocks rallied with SpiceJetBSE 3.09 % registering a bounce of over 4 per cent. According to analysts, the AirAsia-Tata Sons deal gives confidence of other such deals happening in the aviation space.
"The deal is positive for the whole aviation industry. After the deal has gone through, other airlines have become lucrative for other airlines to be invested in," said Sharan Lillaney, Aviation analyst at Angel Broking.
At 01:07 pm, Jet AirwaysBSE 0.34 % was trading 1.2 per cent higher at Rs 519. It has hit a low of Rs 511.10 and a high of Rs 525 in trade today.
SpiceJet was trading 4.17 per cent higher at Rs 33.70. It has hit a high of Rs 34.15 and a low of Rs 32.40 in trade today.
Earlier reports said that the aviation ministry is understood to have opposed the plan, saying the new FDI rules are meant for existing carriers only.
According to the finance ministry sources, AirAsia's application is very much in accordance with rules and there are no potential hurdles.
Following the news, aviations stocks rallied with SpiceJetBSE 3.09 % registering a bounce of over 4 per cent. According to analysts, the AirAsia-Tata Sons deal gives confidence of other such deals happening in the aviation space.
"The deal is positive for the whole aviation industry. After the deal has gone through, other airlines have become lucrative for other airlines to be invested in," said Sharan Lillaney, Aviation analyst at Angel Broking.
At 01:07 pm, Jet AirwaysBSE 0.34 % was trading 1.2 per cent higher at Rs 519. It has hit a low of Rs 511.10 and a high of Rs 525 in trade today.
SpiceJet was trading 4.17 per cent higher at Rs 33.70. It has hit a high of Rs 34.15 and a low of Rs 32.40 in trade today.
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