IndiGo shares fall fifth straight day amid widespread flight disruptions
What's the story
Shares of InterGlobe Aviation, the company that operates IndiGo, fell by 3.4% in early trade on Thursday. The stock hit a day's low of ₹5,405 on the NSE due to major operational disruptions that have left many passengers frustrated. The decline has continued for five consecutive sessions now, with the stock falling up to 9% during this period.
Regulatory action
DGCA investigates IndiGo's operational disruptions
The Directorate General of Civil Aviation (DGCA) has launched an investigation into IndiGo's widespread operational disruptions. The regulator has also asked the airline to submit a mitigation plan to prevent future cancelations and delays. In response, IndiGo admitted that it had witnessed significant disruptions in its operations over the last two days and issued a public apology for the same.
Operational hurdles
IndiGo cites multiple factors for operational challenges
IndiGo attributed its operational challenges to a combination of unforeseen factors. These include minor technical glitches, winter schedule changes, bad weather, increased congestion in the aviation system and new crew rostering rules (Flight Duty Time Limitations). The airline said these issues had a negative compounding impact on its operations that was not possible to anticipate.
Recovery measures
IndiGo implements schedule adjustments to restore stability
To tackle the disruption and restore stability, IndiGo has begun making calibrated adjustments to its schedules. "These measures will remain in place for the next 48 hours and will allow us to normalize our operations and progressively recover our punctuality across the network," said a company statement. The airline's teams are working round-the-clock to reduce customer discomfort and ensure quick stabilization of operations.