Shares of aviation companies
came into limelight on Friday after the government proposed to hike FDI
limit in domestic airlines to over 50 per cent in open skies policy
Shares of aviation companies came into limelight on Friday
after the government proposed to hike FDI limit in domestic airlines to
over 50 per cent in open skies policy.
In the noon trade, shares of Jet Airways were trading over 1.7 per cent up at Rs 406.35 apiece. SpiceJet shares were trading 4.06 per cent up at Rs 44.85. The key benchmark index, BSE Sensex was up 0.20 per cent at Rs 26,891.23.
Under open skies policy, overseas airlines can operate unlimited number of flights into and out of India.
In another announcement, the government also proposed to impose an
additional levy of 2 per cent on all domestic and international tickets
to pay for the regional connectivity boost, said civil aviation
secretary RN Choubey, while presenting the country’s draft aviation
policy. Aviation secy expects to collect Rs 15,00 crore per annum from 2 per cent cess on tickets to pay for regional connectivity push.
Government also plans to boost regional aviation connectivity and
reopen closed airports, civil aviation secretary said, as part of its
plans to improve passenger growth in one of the world’s fastest-growing
yet fiercely competitive aviation markets.
The policy comes as airline passenger numbers increase 20 per cent a
year to 38.8 million in the first half of 2015, leaving India’s major
airports, which account for four-fifths of traffic, saturated.
