Govt revises price band of air fares; time to buy IndiGo, SpiceJet?

The price hike has attracted the attention of market participants, now the stock needs to cross significant resistance to move ahead.

Ministry of Civil Aviation, on Thursday, revised fare price band on flights with 90 to 120 minutes of duration to Rs 3,900, up from Rs 3,500 earlier. The cap on maximum chargeable fare has been raised to Rs 13,000 from Rs 10,000. READ ABOUT IT HERE

The decision comes after Civil aviation minister Hardeep Singh Puri recently said that floor and ceiling price on airfares was an extraordinary measure to prevent a tariff war, which could trigger bankruptcies.

That said, executives of airlines believe that it may be difficult for them to hike fares as demand was