IndiGo Stock Under Pressure As Airline Cancels Nearly 200 Flights Across Major Cities Amid Crew Shortage
The airline, in a statement, attributed the disruptions to a combination of weather-related issues, tech infrastructure bottlenecks and the updated duty-time norms.
IndiGo-parent InterGlobe Aviation Ltd.'s stock is in focus on Thursday after the airline cancelled close to 200 flights across Delhi, Mumbai, Hyderabad and Bengaluru in recent days, sources told NDTV. The cancellations stem from complications arising out of the rollout of new flight duty-time limitation (FDTL) norms, which took effect last month.
According to people familiar with the matter, IndiGo is grappling with a severe pilot and crew shortage triggered by challenges in enforcing the new rostering rules.
The airline, in a statement, attributed the disruptions to a combination of weather-related issues, tech infrastructure bottlenecks and the updated duty-time norms.
“A multitude of unforeseen operational challenges including minor technology glitches, schedule changes linked to the winter season, adverse weather conditions, increased congestion in the aviation system and the implementation of updated crew rostering rules had a negative compounding impact on our operations in a way that was not feasible to be anticipated,” the airline said.
India’s largest airline by market share cancelled over 1,200 flights in November, according to a press note issued on Wednesday. The bulk of these cancellations — 755 flights — were linked to crew and FDTL-related constraints following the rollout of the new norms.
The second-biggest factor was airport/airspace restrictions, which led to 250 cancellations. Another 127 flights were cancelled due to miscellaneous reasons, while 92 flights were grounded because of air traffic control system failures.
The Directorate General of Civil Aviation is investigating the situation and “evaluating measures” with the airline to reduce delays and cancellations and minimise passenger inconvenience. The regulator has also sought a detailed explanation. “IndiGo has been asked to report to DGCA headquarters to present the facts leading to the current situation along with plans to mitigate the ongoing delays and cancellations,” the note said.
Shares of the company ended 1.73% lower at Rs 5,599 apiece, as compared to a 0.18% decline in the benchmark NSE Nifty 50.
