SpiceJet and Jet Airways gained 3.63 per cent and 3.39 per cent to close at Rs 64.15 and Rs 569.70, respectively. MUMBAI: Aviation stocks rose sharply on Thursday after media reports suggested that the government has dropped a plan to cap air fares.While IndiGo, which has almost a third of the domestic market share, gained 1.37 per cent to end at Rs 1,004.55. The announcement by the minister comes at a time when the government is looking at capping fares during times of disaster and also looking at capping cancellation fee.The ministry has asked the airlines to limit the cancellation fee to base fares. Aviation stocks gained on a day when the BSE Sensex fell by 0.95 per cent to close at 26,763.46The aviation stocks came to limelight on the back of Civil Aviation Minister Ashok Gajapathi Raju 's comment that restricting airfares will not make good business sense as it could also jeopardise the government's regional connectivity plan and such a move may discourage airlines to fly on non-profitable routes.

Source: Economic Times June 10, 2016 00:33 UTC