Domestic air services reach 60% of summer schedule 2020; Aviation stocks in red

Aviation Minister was talking about measures taken for reviving the aviation industry during the pandemic.

Sep 18, 2020 01:09 IST India Infoline News Service

Civil Aviation Minister Hardeep Singh Puri said due to Covid-19 pandemic domestic air services have been restarted in a calibrated manner. He said, initially only one third (33%) of the summer schedule 2020 was allowed to be operated which was subsequently increased to 45% on 26 Jun 2020 and then to 60% on 02 Sep 2020.

The minister said the above in a written reply in Lok Sabha on Thursday.

Puri was talking about measures taken for reviving the aviation industry during the pandemic.

Apart from domestic air operations, Puri said, "Promoted private investments in existing and new Airports through the PPP route."

He added, adequate care taken to ensure that cargo terminals at all major airports were operational, whenever required. The ministry is further encouraging Indian carriers to increase their share in international air cargo traffic.

Amid Covid-19, the minister said, exclusive air-links or Air Bubbles have been established with countries which include Afghanistan, Bahrain, Canada, France, Germany, Qatar, Maldives, UAE, UK and USA. Adding he said, "These are temporary arrangements aimed at restarting international passenger services while regular international flights remain suspended due to COVID-19."

Also, the GST rate was trimmed to 5% for domestic Maintenance, Repair and Overhaul (MRO) services, Puri highlighted.

On Friday, aviation stocks witnessed selling pressure. At around 01.56 PM, Interglobe Aviation (Indigo) stock was trading at Rs1316.95 per piece down nearly 1% on Sensex. The stock opened at the day's high of Rs1332.85 per piece but gave away early gains.

Similarly, SpiceJet stock was trading at Rs51.60  per piece lower by nearly 1%. The stock touched the day's high of Rs52.60 per piece in early deals before reversing the trend. 

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