Aviation stocks plunge as Centre extends deadline of fare limits on domestic flights

Currently, the lower and upper fare limit stands at Rs2,000 and Rs6,000 respectively.

Oct 30, 2020 02:10 IST India Infoline News Service

Aviation stocks were in focus on Friday after the Civil Aviation Minister Hardeep Singh Puri announced that the upper and lower circuit on domestic airfares will remain in place for another three months.

At around 2.28 PM, Interglobe Aviation (Indigo) stock was trading at Rs1307.35 per piece down 1.79%, while SpiceJet was performing at Rs49.40 per piece below 0.90%.

Puri in a press conference stated that if the scheduled flights manage to reach pre-Covid levels by the end of 2020. Then there will be no hesitation in removing the fare limit on the domestic airfares.

Thereby, Puri stated that the Centre is extending the price bands for another three months.

Earlier on May 21, the Centre had announced fare limits through seven bands depending upon the duration of the flights. That fare limit was extended further till August 24, 2020, and later till November 24, 2020.

Currently, the lower and upper fare limit stands at Rs2,000 and Rs6,000 respectively. 

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