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InterGlobe Aviation shares tank over 4% after DGCA directive

The scrip of budget carrier IndiGo's parent tanked 4.23 per cent to Rs 1,389 on the BSE.

PTI|
Updated: Nov 26, 2019, 03.42 PM IST
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New Delhi: Shares of InterGlobe Aviation on Tuesday dropped over 4 per cent after the DGCA instructed IndiGo to ground an old A320 neo family aircraft with an unmodified Pratt and Whitney (PW) engine for every new A320 neo plane added to its fleet.

The DGCA on Monday instructed IndiGo to ground an old A320 neo family aircraft with an unmodified PW engine for every new A320 neo plane added to its fleet to prevent large-scale cancellation of flights from January 31 onwards.

The aviation regulator issued the directions in view of the January 31 deadline given by it to IndiGo to replace all unmodified PW engines on its 97 A320 neo family aircraft or face grounding of planes.

The PW engine-powered A320 neo planes in the fleets of IndiGo and GoAir have been facing glitches both mid-air and on-ground since their induction way back in 2016.

Efforts undertaken by IndiGo to replace all unmodified PW engines on its 97 A320 neo family aircraft by January 31 next year -- as per the previous instructions of the DGCA -- do not "instill enough confidence with regard to the timely completion of the said task", said a senior official of DGCA.

The regulator was afraid that from January 31 onwards, it would have to ground many IndiGo planes as they would be left with unmodified PW engines, leading to multiple flight cancellations across the country, the official said.

The shares of the company closed 2.46 per cent lower at Rs 1414.80 on BSE.

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