IndiGo shares fell as much as 5.50 per cent on Monday after the low-cost carrier on Saturday said there is no clear visibility about the delivery of A320 neos
IndiGo shares fell as much as 5.50 per cent on Monday after the low-cost carrier on Saturday said there is no clear visibility about the delivery of A320 neos as delivery of the first aircraft has been delayed by Airbus due to “industrial reasons”. Earlier, the first A320 neo was to be delivered to IndiGo on December 30.
At 1.45 pm, the share price of IndiGo was trading nearly 5 per cent down at Rs 1,086.75. The scrip opened at Rs 1,140 and had touched a high and low of Rs 1,157.75 and Rs 1,080, respectively, in trade so far. Later, the scrip settled 5.56 per cent down at Rs 1079.25.
In a BSE filing, the company said, “At this time IndiGo does not have clear visibility of its future A320 neo delivery schedule and the potential for additional delays exists. We are looking at mitigating the potential shortfall in capacity through other options.”
As per the original plan, IndiGo was to induct 10 A320 neos in the current fiscal ending March 31, 2016. IndiGo had announced to acquire 180 A320s, including 150 A320 neos in 2011, the largest aircraft order by any Indian carrier at that time.
European aircraft maker Airbus claims that this new type of aircraft burns 10-15 per cent less fuel than the existing versions.
Currently, IndiGo has a fleet of 98 aircraft, and about 75 of them are on an operating lease — a business model which has helped it lower costs.
(With inputs from PTI)