Stocks

Aviation stocks continue to nosedive

K. S. Badri Narayanan Chennai | Updated on February 26, 2013

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Debt-ridden Kingfisher Airlines, Jet Airways and low-cost carrier SpiceJet continue to tumble on the bourses.

While Jet Airways crashed 10 per cent to Rs 455, Kingfisher plunged 5 per cent to trade at Rs 10.75 and SpiceJet tumbled 3.35 per cent to trade at Rs 34.6.

Aviation stocks have been under pressure after Malaysian budget carrier AirAsia had last week announced the launch of its new airline in India in partnership with the Tata Group.

Kingfisher, which has been showing some resilience on the bourses of late on hopes of debt payments, also suffered on Tuesday after the Centre withdrew all international operation slots given to the airline. 

These slots — the scheduled time of arrival/departure made available to an airline to operate regular flights — are to be distributed among other airlines. 

This will result in other domestic airlines operating more flights to Dhaka, Kathmandu, Colombo, London, Singapore, Bangkok, Dubai and Hong Kong. The latest move allows domestic airlines to offer 25,000 more seats to these international destinations.

Published on February 26, 2013

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