Aviation stocks soaring as India set to resume international flights

Indian aviation stocks, including SpiceJet, IndiGo parent InterGlobe Aviation, and Jet Airways, rose 5-8% each on March 9 after the civil aviation ministry announced on March 8 resumption of international flight operations from March 27.

“The suspension of scheduled commercial international passenger services to/from India, thus, stands extended only up to 23:59 hrs IST on 26.03.2022 and air bubble arrangements shall accordingly be extended to this extent only,” the ministry had said.

Aviation stocks soaring as India set to resume international flights

ALSO READ – India to restart scheduled international flights after 2 years from March 27

The move is intended to improve international capacity while also lowering airfares, which have been rising owing to increased demand and higher crude oil prices. International operations shall be subject to strict adherence to the health ministry’s guidelines.

Earlier on February 28, the Directorate General of Civil Aviation (DGCA) had extended the ban on regular international flights until further orders.

However, the DGCA said that the flights that are operational under air bubble arrangements, as well as international cargo flights, will continue as scheduled.

Scheduled international flight services have remained suspended since 23 March 2020.

Scheduled international flight services have remained suspended since 23 March 2020. However, special flights have been operating between India and about 35 other countries since July 2020 under air bubble arrangements.

India currently has air transport bubbles with 40 countries including Canada, France, Germany, United Arab Emirates, the United Kingdom, and the US.

SpiceJet was quoting at INR 59.85, up to INR 2.85 or 5%, and InterGlobe Aviation was quoting at INR 1,705.65, up to INR 105.60 or 6.60%, and Jet Airways was quoting at INR 93.90, up to INR 4.45 or 4.97% on the BSE.

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