Aviation stocks: The government is preparing for major reforms in the airport and aviation sector. A special committee formed by the government for this sector has recommended simplifying the rules significantly. If these suggestions are approved, it will be much easier for companies to work. According to the news of Money Control, this reform will also affect the aviation and airport related companies listed in the stock market.
The hassle of separate charges for each facility will end.
So far the rules are quite complicated. Different charges are fixed for every small and big service available at the airport. The Aviation Regulator (AERA) currently fixes the rates for everything like parking charges, landing fees and user development fees (UDF) separately. The high level committee led by Rajiv Gauba has asked in its report to change this method. If reports are to be believed, the committee has suggested that instead of fixing separate rates for each item, all of them should be divided into only 3 main categories. This will provide a lot of relief to the companies running the airports and they will be able to decide their tariffs easily.
No need to make rounds to build a building near the airport
This change in rules is not limited to just money and fees. The committee has given some other big suggestions to increase the pace of work. For example, self-certification facility can now be available for passing commercial floor plans inside the airport. Not only this, if any new building is to be built near the airport, it has also been said that it will be approved automatically. With this, companies will not have to visit government offices for approval and infrastructure development will be possible faster.
One airline will be able to take help from another
To streamline operations, it has also been suggested that one airline company should be allowed to use the ‘ground handling service’ of another airline if needed. This will not delay the work and passengers will also get better facilities. Apart from this, keeping in mind the new technology and future needs, it has been said that the rule of self-certification should also be applicable for flying low-risk drones up to 30 kg.
Impact will be visible on these companies in the stock market
Whenever the government eases rules in any sector, its direct impact is visible on the stock market companies. Market experts say that due to this big step of the government, there can be a good movement in the shares of big companies like GMR Airports, Indigo (InterGlobe Aviation) and Adani Enterprises.
If we look at today’s trading, the share of GMR Airports fell slightly (0.06 percent) to around Rs 107. In the day’s trading this share went up to Rs 108.45 and also came down to Rs 106.36. At the same time, there was a rise in the shares of Adani Enterprises. This share was seen trading around Rs 3020 with an increase of Rs 16.10 (0.54 percent). Today this share made a high of Rs 3,040.50 and a low of Rs 2,972.70.
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