IndiGo, SpiceJet shares jump as government lifts ban on international flights
By Sanjay Maurya
Shares of airline operators InterGlobe Aviation (Indigo) and SpiceJet rose 8% and 5% in early deals on Wednesday (March 9) on the BSE as the government resumes international flights after two years for the first time since the Covid pandemic. The government has declared that scheduled international flight operations to overseas destinations will resume from this month on March 27 and air-bubble arrangements will be ended, according to a post on Twitter from the aviation authority.
| Indigo | SpiceJet |
| CEO: Rono Dutta (24 Jan 2019) | CEO: Ajay Singh (21 May 2015) |
| Founded: 2006 | Founded: 2004 |
| Headquarters: Gurugram | Headquarters: Gurugram |
| Hubs: Indira Gandhi International Airport, MORE | Number of employees: 14,578 (2021) |
| Founders: Rahul Bhatia, Rakesh Gangwal | Founders: Ajay Singh, Bhupendra S. Kansagra |
| Destinations – 96 | Destinations – 53 |
| Key people – M. Damodaran (Chairman), Rahul Bhatia (MD), Rono Dutta (CEO)
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Key people – Ajay Singh (MD), Sanjeev Taneja (CFO), Debojo Maharshi (CMO) |
“The Government of India has decided to resume scheduled commercial international passenger services to/from India from 27.03.2022, i.e. start of Summer Schedule 2022,” read a statement from the Civil Aviation Ministry, “after having recognised the increased vaccination coverage across the globe and in consultation with stakeholders.” According to Civil Aviation Minister Jyotiraditya Scindia, air bubble agreements, which enable two nations to fly into one other’s territory under specific conditions, have been cancelled as well.
The decision will benefit the airline sector, since the travel demand has recovered in recent months, with both IndiGo and Spicejet posting profits in the December quarter after being decimated by the virus for two years. Under an “air bubble” agreement, India enables airlines to fly a restricted number of flights to nations with which it has a bilateral arrangement. Airlines’ operations have been hampered as a result, and their profitability has suffered as a result.
According to the Union Health Ministry, just 3,993 new coronavirus infections were registered in India on Tuesday (March 8), the lowest number in 662 days. According to the Aviation Ministry, overseas operations must adhere to the Ministry of Health and Family Welfare’s international travel rules. The aviation watchdog, Directorate General of Civil Aviation (DGCA), had earlier stopped operations in March 2020 in order to prevent the spread of COVID-19.
