Domestic Flights May Resume Services By May 18; Airline Stocks Up For Second Day

As per reports the government is likely to allow resumption of domestic passenger flights by May 18 and the announcement in this regard can be made as early as Wednesday, an official from the aviation ministry told a leading business daily.

In the wake of the nationwide lockdown that was enforced in three phases, the government has suspended all train and flight services. Now the call on resumption of flight services is most likely to be taken after the government gradually started train services from today.

"We are ready to start operations. Whenever the government permits us, we will take little time to resume," an Airports Authority of India (AAI) official told a leading daily.

And the news of the government's probable approval for air passenger services soon lifted the stocks of airline companies including Spicejet and Interglobe Aviation higher for the second straight day.

In trade on Tuesday (May 12, 2020) while Spicejet was trading higher by about 5%, Interglobe also was up 3.63% at Rs. 996.20.

The resumption of airline services will come as a respite to passengers whose money was stuck as some of the airlines instead of refunding the money against cancelled flights formed a credit shell which can be used for travel within a year's time.

GoodReturns.in