SpiceJet, Jet Airways, InterGlobe tank up to 3% on proposed air travel rules

NEW DELHI: Three aviation stocks – Spicejet, Jet Airways and InterGlobe Aviation – declined up to 3 per cent on Monday after the government this weekend proposed several passenger-friendly measures, which are expected to dent bottom lines of airline operators.

SpiceJet ended lower by 2 per cent, Jet Airways 3.15 per cent and InterGlobe Aviation declined 2.2 per cent.

The civil aviation ministry said domestic airlines will have to refund all statutory taxes levied in the event of flight cancellations. In case of cancellation, the airline would be required to organise another flight within the one hour, failing to which it will have to pay a compensation as high as 200 per cent of one-way basic fare and airline fuel charge. If the airline fails to make the arrangement within 24 hours, then it will have to pay 400 per cent or a maximum of Rs 20,000.

The ministry has also proposed a mandatory 15 kg free baggage per passenger. Plus, for extra baggage, the fee has been fixed at Rs 100 per kg. In addition, it has also been proposed that under no circumstances cancellation charges can be more than the basic fare and carriers cannot levy additional charge to process the refund.

The government has given two weeks to the stakeholders to submit their suggestions and comments before finalising and implementing the new norms, PTI reported.