Aviation stocks down over 2% on cut in excess baggage, cancellation fee

Aviation stocks took a beating on Monday on the BSE after the Civil Avaition Minister proposed what he called "passgenger-friendly" measures on Saturday.

Ashok Gajapathi Raju slashed the charges on excess baggage and capped the cancellation fee while he proposed a steep hike in cancellation refunds. 

While all these measures will make flying more alluring to passengers, it may dent the account books of airlines in India. 

On Monday, on the back of the announcements, the share price of Jet Airways was trading down Rs 15.05 or 2.65% lower at Rs 553.60. At the same time, SpiceJet's stock was down 2.20% or Rs 1.40 lower at Rs 62.35 per share and IndiGo's shares were trading at Rs 973.95 per piece, down 2.50% or Rs 24.95 lower. 

Read all the 'passenger friendly' proposals announced by the Civil Aviation Minister.

On Monday, the domestic market were trading down over 1% tracking global shares that were trading at 4-month lows ahead of crucial central banks' meetings and an important referendum vote that will decide the fate of Britain in the European Union later this month.