Aviation stocks up after Govt approves new aviation policy

After the Union Cabinet approved the new Civil Aviation Policy on Wednesday, the stocks of aviation companies rose in morning trade in a market that was trading in negative territory. 

InterGlobe Aviation was up 0.89%, followed by SpiceJet with 0.30%. 

The stock of Jet Airways which was trading down in the opening trade marginally gained 0.5% before losing all the gains. 

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The government has scrapped the controversial 5/20 norm which means any domestic airline can now fly overseas provided they deploy 20 planes or 20% of their total capacity for domestic operations, PTI reported on Wednesday.

Airlines will soon charge only Rs 2,500 for one hour flights and will get tax incentives for operating on unserved routes even as fliers will have to pay additional levy towards regional connectivity fund under the new Civil Aviation Policy. 

The new policy will be implemented in the current quarter that is June to September.

The introduction of new Civil Aviation Policy have resulted in rise in stocks of aviation companies in the morning trade on Thursday.