NEW DELHI: Shares of India's three listed carriers -- Kingfisher, Jet and SpiceJet -- surged Friday ahead of talks between Premier Manmohan Singh and airline chiefs to discuss the loss-making sector's woes.
Shares of Vijay Mallya-led Kingfisher Airlines, the heavy loss-making carrier which is struggling to keep aloft amid high fuel costs and cut-throat price wars, climbed 7.75 percent to close at 27.10 rupees.
Jet Airways' shares leapt 12.6 percent to 278.70 rupees while SpiceJet's stock jumped 8.12 percent to 23.30 rupees.
Analysts attributed the rise in aviation stocks to hopes that Singh might announce "favourable" policy changes after he meets the chiefs of all of India's airlines Saturday.
Civil Aviation Minister Vayalar Ravi said the carriers sought the meeting with the prime minister, adding the fact that the sector is running at a loss poses a "problem".
"The prime minister is concerned about it, the airlines are the major institution of connectivity, supporting the development of the country," Ravi added.
On the surface, demographics make India, a country of 1.2 billion, an attractive story. India's passenger aviation sector is estimated to be growing at between 15 and 20 percent each year.
But all of India's six main airlines -- barring budget carrier IndiGo -- announced steep losses in the financial quarter to September.
The country's airlines may lose a total of $2.5 billion in the year ending in March, according to the Centre for Pacific Aviation, an industry body.
Earlier this month, Singh said private sector airlines should be managed efficiently, "but if they do get into difficulties, we have to find ways and means to help them."
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