As per reports, it also quoted by a senior government official saying that measures on foreign direct investment, including possibly in multi-brand retail, could come after Friday's cabinet meeting.
At 11.40 a.m. on BSE, SpiceJet was trading higher by 5.59% at Rs 31.15. It has hit a high of Rs 31.50.
Kingfisher Airlines Ltd surged 3.06% at Rs 9.09. It has hit a high of Rs 9.13.
Jet Airways Ltd was trading higher by 2.75% at Rs 345.75. It has hit a high of Rs 347.70 today.
The positive decision from government will boost the aviation sector which is under high debt and operational issues.
Currently, Indian policy allows up to 49% FDI in airlines. However, foreign carriers are not allowed to invest.