Shares of three aviation firms rose by 0.29% to 2.09% at 11:30 IST on BSE after reports civil aviation ministry is likely to abolish the 5/20 rule.
Meanwhile, the S&P BSE Sensex was up 71.33 points or 0.29% at 24,954.92.
InterGlobe Aviation (up 0.29%), Jet Airways (India) (up 2.09%), and SpiceJet (up 1.75%) gained.
An existing 5/20 rule restricts airline companies from flying abroad unless they have flown in India for five years and have a fleet size of 20 aircraft. According to reports, the ministry is considering as many as 15 options to replace the controversial rule. To ensure that the older airlines do not complain a level playing field will be provided and some form of restrictions will be there, report added. The incumbent airlines complain that any relaxation in the 5/20 rule will benefit unlisted newer airlines Vistara and AirAsia India. The policy is in its final stage and the draft Union Cabinet note has already been prepared. The ministry is likely to send the draft note for the Cabinet's nod this week. This will allow the Cabinet to clear it by this month, report added.
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