InterGlobe, SpiceJet rally up to 9% as flights set to resume from May 25

NEW DELHI: Shares of airline companies jumped up to 9 per cent in Thursday's trade after the government said domestic flights will be allowed to resume operations after a two-month-long shutdown.

Airports and carriers will be given guidelines to follow soon, Aviation Minister Hardeep Singh Puri tweeted.

That said, sources told ET NOW that aviation ministry may cap air fares. A discussion between airlines and the government will take place on Thursday regarding this under Aircraft Rules 1937. Fares will be capped sensibly, sources said, adding that the step will be temporary and in the large public interest.


Airlines, sources said, said they cannot lose more money after already incurring major losses during the lockdown. The government had earlier discussed capping airfares at Rs 8000 one way for Delhi-Mumbai.

Airlines and airport operators have been formulating scenarios for the resumption of operations, and the other guidelines being discussed include passengers mandatorily carrying medical certificates to airports and being supplied with masks and gloves on board.

Despite Delhi being a red zone, it is likely to be in the first phase of flights restarting. “A lot of points are being discussed and there are inputs being given by all stakeholders, including airport operators and security agencies,” a person privy to the discussions told ET. “The aviation ministry in consultation with the health ministry will come up with a set of guidelines soon.”

Shares of InterGlobe Aviation closed 7.52 per cent higher at Rs 980.50 on BSE.