Budget 2016: Aviation stocks under pressure; decline by 4 per cent
DSIJ Intelligence / 29 Feb 2016
In a push towards achieving regional air connectivity, Finance Minister Arun Jaitley announced the plan for development of 160 non-functional airports across the country in partnership with state governments.
In a push towards achieving regional air connectivity, Finance Minister Arun Jaitley announced the plan for development of 160 non-functional airports across the country in partnership with state governments.
"In civil aviation, 160 non-functional airports to be developed at a cost of Rs 50-100 crore each and 10 of 25 defunct airstrips to be developed in partnership with state governments," Finance minister Arun Jaitley announced in the Lok Sabha today.
The low cost of flying would help improve regional connectivity and help the government in achieving its goal set for regional flying at a cost of Rs 2,500 per hour flight.
This augurs well for the airlines companies as they would add more destinations within the country. However, implementation of this would be keenly watched by the street as it also involves various other states with non-NDA government.
Reacting to the news all the major airline stocks were trading down in the range of 3 to 5 per cent. Jet Airways, SpiceJet and InterGlobe aviation were all trading at a low.
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