Shares of aviation companies Jet Airways and SpiceJet have rallied more than 5% each on reports that the aviation ministry have proposes abolition of service tax on air tickets & sales tax reduction on aviation turbine fuel (ATF) from an average 25% to a uniform 4%.

“The proposals may not only nurse bleeding carriers back to profits, but also rein in soaring fares," the report suggests.

The aggregate net loss of airlines sector have surged over four--fold to Rs 4,354 crore for the last financial year 2011-12, against Rs 1,012 crore in previous fiscal.

Among the individual stocks, SpiceJet has rallied 9% to Rs 30.15, while Jet Airways has surged 5.3% at Rs 320 on the Bombay Stock Exchange.