SENSEX
NIFTY 50
Hang Seng
Taiwan Weighted
MCX GOLD AUG 05
MCX SILVER SEP 04
USD/INR
EUR/INR80.0630

SENSEX
NIFTY 50
NIFTY MIDCAP 100
S&P BSE MIDCAP
Hang Seng
Taiwan Weighted
DAX
Nasdaq
MCX GOLD AUG 05
MCX SILVER SEP 04
MCX CRUDEOIL AUG 19
MCX NATURALGAS AUG 26
USD/INR
EUR/INR
GBP/INR
JPY/INR

Closing Bell: Sensex, Nifty end higher; RIL top gainer, Tech Mahindra top loser

Global stocks on defensive as US-China tensions spook investors

Oil rises on weaker dollar, but virus woes and US-China tensions weigh

Rupee ends marginally lower; appreciates by 0.24% for the week

Aviation

SoPs issued by Aviation Ministry in consultation with the airlines, says former ED of Air India

Updated : May 21, 2020 04:48 PM IST

Airlines were expected to increase airfares once operations begin, given the limited number of seating to adhere to social distancing norms.

As airlines gear up to take the skies following Civil Aviation Minister Hardeep Singh Puri’s announcement of starting domestic flights from May 25, the government has released certain rules on dos and don’ts for passengers. The aviation ministry has put a cap on airfares and said that airline should adhere to lower-upper limits of fares prescribed.

Airlines were expected to increase airfares once operations begin, given the limited number of seating to adhere to social distancing norms. However, the ministry has now said that airfares will have to be capped to a certain level. Jitendra Bhargava, former ED of Air India shares his views and outlook.

“One needs to welcome the resumption of flight which is much needed, people who were stranded will be able to travel. The SOPs have been issued in consultation with the airlines, which we welcome,” he said.

“In the normal scenario, I would say capping of fares is a bad idea but looking at the grimness of the situation – two months of non-operations, losses have been mounted – there is a fear of airlines overcharging. That will be detrimental to passengers and to airlines itself because of the huge demand destruction, which is a natural corollary of the coronavirus,” he added.

According to him, if air fares are increased, the number of passengers will go down risking the profitability of the sector.

You May Also Like

Amazon Prime Day Sale will see 1,000 new launches from SMEs, says Akshay Sahi

Amazon Prime Day Sale will see 1,000 new launches from SMEs, says Akshay Sahi

GCPL Q1 net profit down 3.1% to 394.9 crore

GCPL Q1 net profit down 3.1% to 394.9 crore

KPIT Tech says worst is over after 21% fall in Q1 net profit

KPIT Tech says worst is over after 21% fall in Q1 net profit

Trending on CNBC-TV18

Live TV

recommended for you