IndiGo share price falls 3% over DGCA's strict order against Airbus A320neo Planes
IndiGo share price: Shares of InterGlobe Aviation, parent firm of low-cost airline IndiGo, slipped 3 per cent on Tuesday after aviation regulator Directorate General of Civil Aviation (DGCA) grounded its eight Airbus A320neo Planes with faulty Pratt & Whitney engines, along with three such aircraft of GoAir.
The IndiGo stock tanked 3 per cent to Rs 1,238 in intraday trade on the BSE. It pared most of its losses to turn flat later in the session.
Following the DGCA action, IndiGo on Tuesday cancelled 47 flights across its domestic network, the airline announced on its website. The flights that have been cancelled are from Delhi, Mumbai, Chennai, Kolkata, Hyderabad, Bangalore, Patna, Srinagar, Bhubaneswar, Amritsar, Srinagar and Guwahati, among others.
The DGCA cracked the whip after an IndiGo flight bound for Lucknow returned to Ahmedabad within 40 minutes of its getting airborne due to a mid-air engine failure yesterday.
Citing safety of aircraft operations, the Director of the DGCA, in the March 12 order, said that A320 Neos fitted with PW1100 engines beyond ESN 450 have been grounded with immediate effect.
Three other IndiGo A320Neo planes have been on the ground since February following similar engine problems.
Yesterday, hundreds of passengers were stranded across the country as dozens of flights were cancelled by IndiGo and GoAir following the grounding of 11 planes.
IndiGo operates about 1,000 flights daily.
IndiGo carries about 40 per cent of domestic flyers, while GoAir has a market share of around 10 per cent.