Spicejet, Indigo jump after windfall tax reduced; Jet Airways slides after arrest of its founder Goyal

Spicejet and InterGlobe Aviation, the parent company of IndiGo Airlines, are trading higher in morning deals on Monday after the government cut down on windfall taxes on locally produced crude oil on Saturday, while embattled Jet Airways was trading lower in the first trading session after the arrest of its founder Naresh Goyal on Friday night. 

The Finance Ministry on Saturday slashed the windfall tax on locally produced crude oil to Rs 6,700 per tonne.

Before the rates were cut on Saturday, the windfall tax was at Rs 7,100 per tonne, which came into effect on August 14.

The ministry has also increased the Special Additon Excise Duty on the diesel export to Rs 6 per litre from Rs 5.50 a litre.

The levy on the export of aviation turbine fuel has also increased from Rs 2 to Rs 4. The SAED on petrol stands at zero.

Amid the developments of the windfall tax slash and the arrest of Goyal, ZeeBiz brings you the latest update about the rise and fall of aviation stock prices.

Jet Airways

The share of the aviation company, which had a roller-coaster ride on Friday, started on a poor note on Monday morning after the news of the arrest of its founder.

The share was trading 1.99 per cent down at Rs 64.12 in early trading on Monday.

Jet Airways dealt one more blow on Saturday after the Enforcement Directorate (ED) arrested its founder Goyal.

He was taken into custody under the Prevention of Money Laundering Act after questioning at the ED's Mumbai office.  

The share of the company in the last five trading sessions has gone down 5.86 per cent as against the benchmark Nifty 50's rise of 0.87 per cent in the same period.

Spicejet

SpiceJet started Monday on a positive note, going higher by 0.61 per cent at Rs 31.25 in the first trading session after the windfall tax was reduced.

The share in the last month hasn't changed much and is trading flat. While the Nifty 50 in the same duration has also been almost flat, sliding just 0.14 per cent.

The Delhi High court last month asked the aviation company to pay Rs 100 crore to its erstwhile controlling stakeholder Kalanidhi Maran. 

Indigo

InterGlobe Aviation was trading higher by 0.20 per cent at Rs 2,443.45 after the windfall tax was reduced.

The airline has recently revived its Eats on-board catering service for all its domestic and international flights.

The share has been down 2.11 per cent in the last trading five sessions, while it has lost 2.77 per cent of its value in the last one month.

This is contrary to the performance of the share in the last six months and the year, when it soared 31.63 per cent and 20.86, respectively.