A parliamentary panel suggested regulating airfares according to specific routes and creating a separate organization to regulate ticket pricing, which caused shares of InterGlobe Aviation Ltd., the parent company of IndiGo, to drop by about 5% today. The proposal came amid worries about soaring airfares from a variety of sources.
The stock of InterGlobe Aviation dropped 4.7% to Rs 2982.40 from the previous closing on the BSE of Rs 3130.15. The shares of InterGlobe Aviation had opened flat earlier at the same price. A total of 0.24 lakh of the company's shares were traded, generating a revenue of Rs 7.39 crore.
The stock has increased by 3.67% since the start of the year and by 51.24% in only one year. Three months later, the shares have increased 19.42%. The company's market value dropped to Rs 1.18 lakh crore. On February 10, 2022, the aviation stock reached a 52-week high of Rs 3301.40, and on March 28, 2023, it reached a 52-week low of Rs 1810. According to a PTI report, the committee concluded that airline self-regulation of ticket rates has not been successful after taking into account the ministry of civil aviation's comments about airfares.
The report detailing the government's response to its recommendations and observations regarding airfare fixing was presented to the Parliamentary Standing Committee on Transport, Tourism, and Culture on January 8.
The panel stated in the study that it has observed several instances of unusually high airfares, particularly during festivals or vacations. The group concluded that airline self-regulation was ineffective and suggested that a system be developed that would provide the DGCA the authority to control air tariffs.
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