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15-Feb-2009 11:34 PM

Indian airline shares drop as railways cut fares

Analysis

SpiceJet, Kingfisher Airlines and Jet Airways shares fell 4.7%, 2.1% and 1.0%, respectively, on 13-Feb-09, as the Railways Ministry announced a 2% cut in passenger fares under the union Budget. After last week's hike in domestic air fares - a move that prompted a government investigation in possible "cartelisation" in the sector - the attractiveness of rail travel has improved.

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