Temple Run: Pvt Jets to Crowd Ayodhya Skies

Analysis of Ram Temple Inauguration in Ayodhya: Impact on Industries, Companies, and Advice for Retail Investors

Source and Citation: Excerpts from Economic Times on Jan 13, 2024.

Analysis for a Layman

The news article revolves around the announcement by Uttar Pradesh Chief Minister Yogi Adityanath that 100 private chartered planes will land at the newly built Ayodhya airport on January 22nd for the inauguration of the Ram Temple. Prime Minister Narendra Modi, along with various celebrities and business leaders, is expected to attend this event.

The surge in charter flight bookings, alongside increased rail and road travel to Ayodhya, indicates a substantial impact on the local and national travel industry. The article explains that this spike in charter flights is not solely due to the temple inauguration but is also influenced by other events like the Vibrant Gujarat summit. However, issues such as fog and low visibility may cause flight delays.

Temple Run: Pvt Jets to Crowd Ayodhya Skies

Impact on Retail Investors

For retail investors, this temple inauguration signifies a potential rise in religious tourism in India, benefiting hospitality, transport, and infrastructure stocks in the long term. Stocks like IRCTC, Air India, Indigo, SpiceJet in aviation, and GMR Infra, Dilip Buildcon in infrastructure could experience renewed interest.

However, it’s crucial for investors to approach this news with caution, as short-term expectations may be inflated. Waiting for actual on-ground data before making investment decisions and considering profit booking if stocks have already seen significant gains could be prudent.

Mutual funds with exposure to UP state, airport operators, roads, railways, and tourism could witness increased flows. However, it’s advisable to review holdings before making new investments and prefer a flexible or staggered investment approach over lump sum.

Impact on Industries

The aviation industry is anticipated to be the most impacted, with a six-fold increase in flights to Ayodhya airport on the inauguration day, putting pressure on limited parking and infrastructure. Higher flight income is expected to offset staff and operational costs for the industry.

Railway and road transport are also likely to see a significant spike in bookings, benefiting UP tourism. This surge in travel is expected to boost various sectors, including hotels/lodges, catering, packaged food & beverages, restaurants, and dhabas, over the longer term.

Infrastructure sectors, including airport terminals, luggage handling, two-wheelers, and three-wheelers rentals, as well as diesel gensets for power backup, could experience increased demand. The rise in religious tourism also makes a case for additional hotels and improved transport links.

Telecom and media & entertainment sectors may witness growth due to extra phone/data usage and increased viewership over live coverage of the inauguration. E-commerce could gain traction, especially in digital payments.

Long Term Benefits & Negatives

The inauguration signals the UP government’s commitment to developing Ayodhya into a major religious tourism hub, bringing several long-term benefits:

  1. Employment Generation: Rise in hotels and transport services benefiting the youth.
  2. Infrastructure Boost: Developments at Ayodhya airport and the launch of more flights connecting other Indian cities are likely.
  3. Stimulus for Local Businesses: Large floating population benefiting dhabas, shops.
  4. Positive Image: Attracts more investments in UP, likely emphasizing roads, railways, and power infrastructure.

However, some downsides need monitoring, such as potential strain on existing resources and the need for balanced development to avoid over-dependence on religious tourism.

Short Term Benefits & Negatives

In the short term, the inauguration brings a significant positive impact to UP’s image, aiding investor summits and potentially attracting new projects. Stocks in hospitality, aviation, and infrastructure may see positive sentiment.

However, there are risks of overhyped expectations beyond actual potential, including logistical challenges such as congestion at the airport, strain on rail and road capacities, possible flight delays, and last-minute changes to parking rules.

While the overall mood is positive for longer-term development, short-term challenges require close monitoring by government agencies to ensure a smooth experience for visitors and successful execution of the event.

Companies Impacted by Ayodhya Temple Inauguration:

Indian Companies:


  • Airlines:
    • IndiGo, SpiceJet: First movers with established Ayodhya routes, likely to see strong bookings and potential route expansion.
    • Other Airlines: Increased demand for flights to neighboring airports like Lucknow, Varanasi, could benefit airlines like Air India, GoAir.
  • Chartered Flight Operators:
    • Club One Air, JetSetGo, Million-Air: High demand for private jets to Ayodhya could lead to record bookings and revenue.
  • Hotels and Tourism:
    • Hotels in Ayodhya and surrounding areas: Surge in visitors will lead to near-capacity bookings and potential price hikes.
    • Travel Agencies and Online Booking Platforms: Increased travel demand to Ayodhya could boost bookings and platform traffic.
  • Infrastructure and Construction Companies:
    • Companies involved in airport expansion: Increased traffic at Ayodhya airport could lead to further expansion projects, benefiting construction firms.
    • Hospitality Infrastructure Developers: Increased demand for hotels and tourism facilities could attract investments from infrastructure companies.


  • Local Businesses:
    • Small shops and vendors: Competition from established brands and limited access to high-spending clientele might impact local businesses.
  • Road Transportation:
    • Intercity Bus Operators: Increased train and air travel might lead to lower demand for bus travel to Ayodhya.
  • Other Travel Destinations:
    • Tourism hotspots near Ayodhya: Diverted tourist traffic might temporarily impact other popular destinations.

Global Companies:


  • Luxury Goods and Services:
    • International brands with presence in India: High-spending visitors might increase demand for luxury products and services.
  • Private Jet Manufacturers:
    • Bombardier, Dassault Aviation: Increased demand for private jets in India could benefit these global manufacturers.
  • Hotel Chains:
    • International hotel chains with India presence: High demand for hotel accommodation could benefit chains like Marriott, Hilton, Taj Hotels.


  • Global Airlines:
    • Airlines not operating in India: Limited benefit from the event as most traffic will be on domestic routes.

Market Sentiment:

  • Overall, the news is positive for travel, hospitality, and luxury sectors in India. Increased tourism and spending associated with the event could boost these sectors and positively impact relevant stocks.
  • Airport expansion and infrastructure projects could attract investments, benefiting construction companies.
  • Local businesses and regional tourism destinations might face some headwinds due to competition and diverted traffic.
  • Global companies will have limited direct impact, although luxury brands and certain service providers might see some gains.

Note: This analysis is based on the information provided in the news article and may not be exhaustive. Consider conducting further research before making any investment decisions.

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