InterGlobe Enterprises that operates international and domestic aviation services under IndiGo brand has rallied over 5% on talks of the goverment could soon resume domestic flight operations in India.
Other aviation companies such as SpiceJet surged 5% as well.
Media reports suggest the government could allow airline companies to resume operation of local passenger flights by May 18.
Permission to operate international flights will take longer, given that issues of logistics and security and safety as well as health are bigger and more sensitive there.
The move to allow flights comes after the government permitted resumption of passenger train services from May 12. Both rail and flight services have been suspended in India since March 25 when the nation went into a complete lockdown.
In a separate development, the Rahul Bhatia-owned InterGlobe Enterprise has appointed an Australian consultant to look into the bidding process of Virgin Aurstralia.
In an exchange filing, however, InterGlobe aviation has clarified that its airline IndiGo has neither formulated any indicative proposal, nor does it have any interest in this matter.
IndiGo, the country’s largest airline service provider, generated Rs 27769.81 crore revenue from aviation business (97.44 % of Total Sales), traded business contributed Rs 395.41 crore to (1.38 % of Total Sales) while other operating revenue stood at Rs 331.55 crore (1.16 % of Total Sales) for the year ending Mar 2019.
This document is meant for the recipient only for use as intended and not for circulation. This document should not be reproduced or copied or made available to others. The information contained herein is from the public domain or sources believed to be reliable. While reasonable care has been taken to ensure that information given is at the time believed to be fair and correct and opinions based thereupon are reasonable, due to the very nature of research it cannot be warranted or represented that it is accurate or complete and it should not be relied upon as such. Also above note is not a recommendation to Buy or SELL and is only a view based on facts and figures and we will be in no way responsible for any losses incurred by anyone who uses this information to either trade or invests securities mentioned herein.