Cash-stripped Kingfisher Airlines which was making news on salary issue, rose 19.98% to Rs 12.97. The SpiceJet stocks surged 11% to Rs 38.35. It touched intra-day high of Rs 41.30. The shares of the Jet Airways rose 2.24% to Rs 376.60.
On Friday, cabinet permitted foreign airlines to make foreign investment, up to 49% in scheduled and non-scheduled air transport services.
Until now, foreign airlines were only allowed to participate in the equity of companies operating cargo airlines, helicopter and seaplane services, but not in the equity of an air transport undertaking operating scheduled and non-scheduled air transport services.
The total FDI inflows into the air transport sector, during January, 2000 - April, 2012, were US $ 434.75 million, constituting only 0.25% of the total FDI inflows into the country.
This was much needed boost for the aviation sector, as higher foreign investment inflows will strengthen the sector.