Airline stocks rally as cabinet approves new aviation policy

The cabinet has just approved the long-awaited new civil viation policy. Touted as a "passenger-friendly" policy by the Civil Aviation minister, it puts a Rs 2,500 cap on one-hour air time regional flights and has scrapped the 2% cess proposed on all regional flights.

Following the domestic equity markets that snapped its losing streak and opened slightly higher, in green, on Wednesday, aviation stocks were trading strong. Intraday, the stocks gained momentum and were trading much higher than the market sentiment, in anticipation of the new policy being cleared by the cabinet.

After the announcement of the policy being cleared, the stocks of all three listed airline companies soared on the BSE.

InterGloble Aviation (IndiGo) was trading at Rs 1,020.05, up Rs 30.80 or 3.11% higher on the BSE at 1252 hours. The stock of SpiceJet was trading at Rs 66.85, up Rs 2.70 or 4.21% higher and Jet airways was up 1.73% at Rs 569.50 from previous close.

Here's what you need to know about the new civil aviation policy. 

Here's our full coverage of the civil aviation policy