SpiceJet jumps after the airline gets designated as Scheduled Carrier for US Flights
Domestic aviation major SpiceJet has been designated as a Scheduled Carrier for the US flights and the company will soon commence flights on the route. Only other Indian airline to operate on this route is the national carrier Air India. Air India has been allowed to operate flights under “Vande Bharat” mission by Indian government which has been criticized by many for overcharging Indians stranded abroad.
As United Airlines started operating flights from US to Indian destinations and the airfare was almost half of what Air India was charging, the Indian airline has also slashed the fares by almost 50 percent. Air India was using monopoly to overcharge consumers. Now, as SpiceJet has been allowed, there will be more airlines for consumers to choose from. Indian government has been taking strict measures but allowing only Air India to operate the flights can be termed as unfair towards Indians wishing to fly back home. International flights have been banned since March and many people have been waiting for the flights to resume.
SpiceJet stock jumped by nearly 6.4% during the trading session after the company shared the information with stock exchanges. SpiceJet is also planning to introduce wide-body airplanes to its fleet as it would operate long-haul flights from United States.
"Till international civil aviation can reclaim its pre-COVID numbers, I think the answer lies in bilateral air bubbles which will carry a possible number of people but under defined conditions as countries are still imposing entry restrictions, including India," Civil Aviation Minister Hardeep Singh Puri.