Airline stocks crumbled over 6 per cent on Monday after aviation regulator Directorate General of Civil Aviation (DGCA) told carriers not to take bookings for travels after May 3.
On Sunday, the DGCA directed airlines to stop taking bookings during the lockdown period for travels after May 3 as the government is yet to take a decision on when it can allow companies to recommence their flight operations. The DGCA also assured them that they would be given sufficient time to restart their businesses.
In this regard, the regulator had issued a notification to all the companies who had started taking bookings for May 4.
“All airlines are hereby directed to refrain from booking tickets… Further, the airlines may note that they shall be given sufficient notice and time for restarting operations,” the circular stated.
Coming back to today, InterGlobe Aviation shares tumbled 6.05 per cent to Rs 1,004.50 per unit and those of SpiceJet fell by 1.65 per cent to Rs 47.80 on the BSE, at the time of reporting.
All domestic and international commercial passenger flights have been suspended for the lockdown period. However, cargo and special flights permitted by the DGCA can fly in this period.
The first phase of the lockdown was from March 25 to April 14. The second phase began on April 15 and ends on May 3.