Shares of aviation companies have rallied in trade today after the government said it would soon launch the process to allow foreign airlines 49% stake in Indian carriers. Foreign carriers are not currently allowed to directly or indirectly make any investment in Indian carriers.

The move is expected to open the doors to international carriers looking to leverage the large domestic network of Indian carriers. It could also provide a reprieve to airlines under financial strain and looking to raise funds. Private equity funds are not interested in the sector and raising money through debt is becoming difficult, with banks not keen to fund the sector further.

Among the individual stocks, Jet Airways has rallied 15% to Rs 269, followed by SpiceJet up 10% at Rs 24.60 and Kingfisher Airlines has surged 8% at Rs 27.15 on the Bombay Stock Exchange.