Covid -19 Pandemic continues to decide the Fate of Air travel and airlines . In its peak during the First wave, hardly there were flights to be seen operating to a Capacity.
Before second wave , there was some kind of consolidation of air travel in india , that took a hit quite recently. But , as situation inches towards normalcy, we can see Indian Civil aviation regulator- DGCA into action immediately.
Airlines can now operate a maximum of 65 per cent of their pre-Covid domestic flights instead of the 50 per cent allowed till date, the Civil Aviation Ministry has said.
The carriers have been operating only 50 per cent of their pre-Covid domestic flights since June 1 in accordance with a May 28 order of the ministry. Before June 1, the cap was at 80 per cent.
The May 28 decision to bring down the cap from 80 to 50 per cent was taken "in view of the sudden surge in the number of active Covid-19 cases across the country, decrease in passenger traffic and the passenger load (occupancy rate) factor", the ministry had said.
Considering the increasing passengers' demand for domestic air travel, the capacity of domestic civil aviation operations will be increased to 65% from 50% from the date of issue of this order & upto 31.07.2021 or until further orders, said ministry of Civil Aviation, India.
It issued a fresh order on Monday, wherein it modified the May 28 order stating that "50 per cent capacity may be read as 65 per cent capacity".
Monday's order also stated that the 65-per cent cap will be applicable till "July 31, 2021, or until further orders, whichever is earlier".
When the government had resumed the scheduled domestic flights on May 25 last year after a two-month break, the ministry had allowed the carriers to operate not more than 33 per cent of their pre-Covid domestic services. The cap was gradually increased to 80 per cent by December.
Stocks Respond !
IndiGo, Spicejet and other airline share prices surged up to 5 per cent on BSE on Tuesday, a day after the Ministry of Civil Aviation raised the flight capacity allowance to 65 per cent.
Analysts say even though the aviation ministry increased flight capacity to 65 per cent, rising fuel prices, slack monsoon period and fear of an impending third Covid-19 wave could dampen the upward momentum for airline stocks.
Barring Jet Airways share price, which hit a 5 per cent lower circuit at Rs 108.45 apiece, all the airline stocks were trading in green.
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