STATESMAN NEWS SERVICE
Mumbai, 2 July
Jet Airways stock crashed more that nine per cent in early trade today on both the Bombay and the National Stock Exchanges on reports that the Prime Minister’s Office has asked the Cabinet secretary to examine whether the joint venture deal between Mr Naresh Goyal-controlled Jet and Abu Dhabi’s Etihad Airways may jeopardise national security as is being perceived in certain quarters.
The sensitive deal, first of its kind under the relaxed FDI or foreign direct investment regime, involving 24 per cent stake purchase by Etihad for $380 million, market sources claim may face turbulence irrespective of staunch defence put up by the civil aviation minister Ajit Singh. 
Jet Airways share plunged more than nine per cent to Rs 438 on the BSE and Rs 435.15 on the NSE. It recovered following the aviation minister’s assurance that the deal is in the interest of domestic aviation sector. 
The stock closed at Rs 455.55, down 2.12 per cent on the BSE and at Rs 454.90, down 2.08 per cent on the NSE. 
Doubts, however, linger about the survival of Jet-Etihad agreement in the markets as well as in the aviation sector.
Market sources tend to link Jet Airways’ future with the success of the FDI deal as its losses have been mounting with every passing quarter. For the fourth quarter ended 31 March 2013, its loss stood at Rs 495.53 crore.
Mr Goyal, who holds 79.99 per cent controlling shares in Jet Airways via Cayman Island-registered Tailwinds Limited, was earlier asked by market regulator the Securities and Exchange Board of India to establish that Jet is wholly domestic airline before clearing the sale of 24 per cent stake to Etihad Airways using FDI route.
Aviation experts say the deal ran into problem after the Opposition politicians Mr Subramaniam Swamy of Janata Party and Mr Jaswant Singh, a BJP MP, wrote to the Prime Minister Manmohan Singh raising concern over “massive” allocation of weekly seats to Etihad Airways on its flights from Abu Dhabi to various domestic destinations. 
Mr Swamy, in a letter to the PM on 29 May, requested Mr Singh to investigate potential threat to the national security as he also alleged quid pro quo facilitated the signing of a deal between India and Abu Dhabi in April 2013 under which the Etihad Airways was offered 36,670 seats on its weekly flights to India. The Abu Dhabi’s airline agreed to buy 24 per cent shares in Jet Airways immediately after the seat allocation agreement in April.