IndiGo crisis wipes $5 billion from founder's fortune
IndiGo, India's biggest airline, is having a rough time.
A recent crisis knocked $5 billion off its market value and cut founder Rahul Bhatia's net worth by $1.5 billion—he now has $9.1 billion, his lowest in six months.
Why the trouble?
IndiGo's stock has been sliding, mostly because of stricter pilot rest rules (FDTL) and tech problems with Airbus planes.
Shares resumed their decline on December 10 after the DGCA directed IndiGo to cut 10% of its flights since it couldn't meet the new requirements.
Moody's even called the situation "credit negative," warning about possible losses from refunds, compensation payouts, extra costs, and potential penalties by the aviation regulator.
Despite this bumpy patch, IndiGo was known for strong returns since 2015—but right now, things aren't looking so smooth.