Major airlines stocks Jet Airways (India) and SpiceJet plunged
on Thursday on concern over increase competition after AirAsia
proposed to set up airline in India in joint venture with Tata
Group and another Indian investor.
Jet Airways' shares lost 4% to Rs 559.90 and thereby losing Rs 2
billion in market capitalization.
Meanwhile, shares of budget airline Spicejet plunged 6.55% to Rs
37.80. It lost Rs 1.28 billion in market capitalization.
AirAsia's new Indian airline is likely to start operations by
the fourth quarter of this year with about USD 50 million initial
investments by the Malaysian budget carrier.
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