InterGlobe Aviation shares fell again on Tuesday, extending losses triggered by IndiGo’s nationwide operational disruption. The stock dropped 1.5 per cent in morning trade to Rs 4,850, following an 8 per cent plunge on Monday that took it to a multi-month low and pushed its market capitalisation below Rs 2 lakh crore.
The stock has now declined for eight consecutive sessions, shedding around 17 per cent over the past seven days and wiping out nearly Rs 40,000 crore in market value. Several brokerages have turned more cautious, with some cutting target prices as the scale and financial impact of the disruption become clearer.
Mass Flight Cancellations Deepen Passenger Chaos
The crisis continued to weigh on sentiment after IndiGo cancelled more than 2,000 domestic and international flights over six days, triggering widespread disruption at major airports. Delhi airport said on Monday that flight schedules remain unstable and urged passengers to check their flight status before travelling.
DGCA Issues Show-Cause Notice To CEO
Regulatory scrutiny intensified as the Directorate General of Civil Aviation (DGCA) sought a detailed explanation from the airline for the large-scale disruptions. A show-cause notice issued on December 6 accused CEO Pieter Elbers of “significant lapses in planning, oversight and resource management” and inadequate preparation for the revised Flight Duty Time Limitation (FDTL) norms.
Crew Shortage Emerges As Key Pressure Point
A sharp crew crunch, particularly among pilots, has become the most visible stress point after the new FDTL norms mandated longer rest periods and tighter rostering. IndiGo has struggled to adjust its large point-to-point network to comply with the updated rules, fuelling cancellations, delays and rising passenger complaints.
Government Weighs In, Enforcement To Tighten
Civil Aviation Minister Ram Mohan Naidu Kinjarapu told Parliament on Monday that the disruption stemmed from internal rostering and planning failures. He said existing passenger protection rules under Civil Aviation Requirements (CARs) would be enforced strictly and reiterated the government’s push to expand airline competition.
“Today, India has a capacity of five big airlines and there has been an effort from the ministry to encourage more airlines,” he said.
Investor Confidence Remains Fragile
IndiGo has said it expects operations to stabilise by December 10, but market sentiment remains weak as investors assess the financial fallout from prolonged cancellations, higher crew costs and possible regulatory action.
