IndiGo Shares Recover After Addressing DGCA Concerns
IndiGo shares have broken their five-day losing streak, showing a slight rebound as the airline responds to the Directorate General of Civil Aviation (DGCA)’s recent show-cause notice amid flight cancellations. Here’s a closer look at the situation:
– Current Stock Performance: After declining 1.7% during the previous sessions, InterGlobe Aviation shares fell to an intraday low of ₹4,842.05 on the BSE. Overall, the stock has dropped 18% in the last week.
– Flight Cancellations: Recent operational difficulties resulted in over 2,000 flights being canceled, primarily due to a combination of pilot duty norm changes and technical issues.
– Regulatory Communication: In a formal statement, IndiGo acknowledged the operational challenges it faced and requested additional time from the DGCA for a detailed root-cause analysis.
– Operational Factors: Several elements contributed to the disruptions, including:
– Technical Glitches: Minor issues that cumulatively affected operations.
– Schedule Realignments: Changes linked to seasonal adjustments.
– Weather Conditions: Adverse weather impacting flight schedules.
– FDTL Implementation: New regulations under Flight Duty Time Limitation Phase II affecting crew availability.
– Recovery Steps: Despite these hurdles, IndiGo reported operational recovery on Monday, operating over 1,800 flights with improved on-time performance. Significant efforts include:
– Canceling 562 flights to reposition aircraft and crews.
– Processing Rs 827 crore in refunds up to December 15.
– Providing accommodations and transportation for affected passengers.
IndiGo’s proactive measures in addressing DGCA concerns and improving operations reflect an aim to restore investor confidence. As the airline continues to enhance its service reliability, shareholders and travelers alike will be watching closely for further updates.