The country’s largest low cost airline Indigo is facing shortage of pilots and crew members. Due to which the airline had to cancel more than 200 flights. This decision cost the company a lot in the stock market. The company’s shares saw a decline of more than 3 percent during the trading session. Due to which the valuation of the company reduced by Rs 7160 crore.
Even in the month of November, the company had to cancel many flights. But in the last few days, the problems of the airlines have increased a lot and DGCA also had to come forward and asked for clarification from the airlines on the whole matter. A plan has also been sought from the company, in which it has been asked to explain how it will streamline its operations during the peak season. Let us also tell you what kind of update has come out from the stock market regarding Indigo.
Big fall in company’s shares
According to BSE data, there was a big decline in the shares of IndiGo, one of the biggest airlines of the country. If we look at the data, the company’s shares fell by 3.30 percent during the trading session and reached the day’s lower level at Rs 5407.30. Whereas a day ago the company’s share was seen at Rs 5592.50. However, at 3 pm the company’s shares were trading at Rs 5428 with a decline of about 3 per cent. However, in the morning the company’s shares opened at Rs 5499. On August 18, the company’s shares had reached a 52-week high of Rs 6,225.05. Since then it has seen a decline of more than 13 percent.
Also read: 200 flights of Indigo canceled, fare from Delhi to Bangalore reached 43 thousand
Company suffered loss of Rs 7160 crore
Due to the fall in the shares of the company, there has been a big decline in the valuation of Indigo. If we look at the figures, the market cap of the company after the stock market closed a day earlier was Rs 2,16,200.51 crore. Which remained at Rs 2,09,040.86 crore during the trading session on Thursday. This means that the company suffered a loss of Rs 7,160 crore during the trading session. According to experts, unless there is improvement in the operations of the airlines, there may be pressure on the shares of the company’s airlines.
More than 200 flights canceled
The Gurugram-based airline is struggling to arrange the required crew members to operate its flights in view of the new rules on flight-duty and rest periods for its pilots. Due to which Indigo on Thursday closed three airports…Mumbai, Delhi and Bengaluru…. Apart from this, 200 more flights from other cities of the country were cancelled. The number of flights canceled at Mumbai airport during the day stood at 86 (41 arrivals and 45 departures). Whereas in Bengaluru, 73 flights including 41 arriving flights were cancelled. Apart from this, 33 flights were canceled at Delhi airport for Thursday. The source said that the number of canceled flights is likely to increase as the day progresses.
What is the problem?
The airline’s on-time performance (OTP) at six major airports… Delhi, Mumbai, Chennai, Kolkata, Bengaluru and Hyderabad… fell by 19.7 per cent on December 3 as it struggled to mobilize the required crew to operate its services. This is almost half less than the figure of December 2. At that time it was 35 percent. IndiGo is facing a severe shortage of crew after the implementation of the second phase of FDTL (flight duty time limit) norms, a source said on Wednesday. Due to this, flights are being canceled at all airports and there are huge delays in operations.