SpiceJet, IndiGo Shares Fall Over 5% Post Air India Crash; Crude Oil Rise Weighs Sentiments

Shares of SpiceJet Ltd. and IndiGo operator InterGlobe Aviation Ltd. extended declines for the second session and fell nearly 6% on Friday. This comes after Air India's Ahmedabad-London plane crash on Thursday.

SpiceJet stock fell 5.64% to Rs 42.16, while InterGlobe Aviation was down 5.49% to Rs 5,176 per share, hitting a one-month low.

Air India flight AI-171, heading from Ahmedabad to London, crashed shortly after takeoff on Thursday afternoon. The flight had a total of 242 passengers on board. Air India confirmed that there was one survivor from the crash, who is currently being treated at the hospital.

The Boeing 787 Dreamliner had a capacity of 300 passengers. The Gatwick-bound flight was reported to be carrying a lot of fuel.

The Ministry of Civil Aviation is mulling a safety review of the domestic fleet of Dreamliners following the devastating crash. The government is considering the possibility of grounding all Boeing 787-8 Dreamliners as a precautionary measure, while initial inquiries into safety concerns are underway, people familiar with the matter told NDTV Profit.

Air India currently uses its fleet of 787-8s for long-haul international routes, including to the UK, North America and the Middle East. The airline is expected to receive another Dreamliner by the end of the year.

Overall, it has 20 additional 787s on order and a Letter of Intent for an additional 24 aircraft, according to data from aviation consultant Cirium.

The deadly crash of the 12-year-old Dreamliner is also expected to prompt global authorities to scrutinise the Dreamliner's safety protocols as the investigation begins, especially in light of the multiple safety incidents involving its aircraft over the last few years.

Additionally, the markets were dragged down on Friday following reports of an Israeli airstrike in Iran. Israel Prime Minister Benjamin Netanyahu said that in the attacks they targeted military, and nuclear program sites, as per a Bloomberg report.

The attacks claimed lives of several commanders and scientists, according to local media reports. Supreme Leader Ayatollah Ali Khamenei said they will deliver a severe response, Bloomberg reported.