Shares of InterGlobe Aviation tanked over 5% on Wednesday as the low-cost airline has cancelled as many as 42 flights on DGCA's move to ground 11 aircraft.
Shares of InterGlobe Aviation tanked over 5% on Wednesday as the low-cost airline has cancelled as many as 42 flights on DGCA’s move to ground 11 aircraft. All the stocks related to aviation industry were under pressure after DGCA (Directorate General of Civil Aviation) grounded several aircrafts citing safety concerns of passengers arising out of the Pratt & Whitney manufactured neo engines. The stock of the parent company — InterGlobe Aviation — of the airline carrier Indigo witnessed a major setback on Wednesday.
Shares of InterGlobe Aviation posted their biggest intraday percentage loss since 25 September 2017. The stock of Interglobe Aviation plunged as much as 5.42% to a day’s low of Rs 1,231 on NSE after the aircraft carrier cancelled as many as 42 flights on Wednesday. The domestic aircraft carrier had cancelled 42 flights on 14 March as DGCA grounded eight of its A320neo planes along with three of GoAir due to Pratt & Whitney engine issues. The flights which were cancelled include the flight to Mumbai, Kolkata, Pune, Jaipur, Srinagar, Bhubaneswar, Chennai, Delhi, Dehradun, Amritsar, Bengaluru and Hyderabad, among others, as per the announcement by the airline on its website.
Earlier yesterday, IndiGo and GoAir jointly cancelled over 65 flights due to the grounding of their 11 aircraft by the country’s aviation watchdog DGCA on Monday. The uncertain and immediate cancellation of services by the airlines has affected thousands of passengers as they had pre-booked these flights amid the concerns of exorbitant fares which are charged by the carriers for last-minute travel.
Shares of other aviation companies traded mixed on Wednesday. Shares of the domestic rivals of InterGlobe Aviation, SpiceJet (down 0.74% at Rs 134.85) and Jet Airways (up 1.08% at Rs 707.5) traded mixed while stocks of Jagsons Airlines slumped as much as 4.83% to a day’s low of Rs 2.56. The stock of Global Vectra Helicorp traded up 0.78% at Rs 136 on BSE.