The parent company of low-cost carrier IndiGo, Interglobe Aviation Ltd., saw a 1% intraday decline in its shares on Friday, December 5, amid the country’s ongoing severe operational disruption brought on by technological problems, airport traffic, and operational needs, which resulted in a high number of flight delays and cancellations.
The airline has been canceling 170–200 flights per day, which is significantly more than usual. In recent days, it has canceled over 1,000 flights, which prompted the Center to step in.
At 9:44 AM, the stock was trading at Rs 5,370 per share, down 1.21%.
With a 7% decline over the last five sessions, the scrip has been bearing the brunt of the significant interruption in recent sessions. During Thursday’s session, stocks fell 2%.
Senior officials indicated on Thursday that IndiGo has blamed its significant increase in flight cancellations on crew planning problems, operational limitations during the winter, and transitional difficulties in applying the updated Flight Duty Time Limitations (FDTL) regulations.
During a thorough investigation called by the Directorate General of Civil Aviation (DGCA), the airline provided the data and preliminary explanations in response to network problems that had increased since late November.
In order to prevent excessive price increases due to the widespread disruptions, the DGCA was also instructed to closely monitor airfares.
According to officials, IndiGo communicated that the new FDTL regulations, which limit nighttime landings, require longer rest periods, and cap duty hours, have put a strain on crew resources, particularly at a time when the airline is already experiencing a cockpit staff shortage.
Citing the court mandate, the DGCA enforced the regulations with few relaxations despite more carrier lobbying.
Most airlines began preparing very late, failing to appropriately modify crew rosters 15 days in advance as necessary, even though enough time was given, according to ALPA.
Under the direction of the Director General, the DGCA examined IndiGo’s data and instructed the airline to resume operations as soon as possible and make sure that corrective actions do not result in fare increases.
