Shares of Interglobe Aviation (IndiGo) slipped 3 percent intraday as DGCA asked company to ground 8 A320 neo planes.
Directorate General of Civil Aviation (DGCA) has asked IndiGo and GoAir to ground 8 and 11 A320 neo planes, respectively.
Indigo has cancelled 47 flights after DGCA grounds aircraft with faulty engines and GoAir cancelled 18 flights post DGCA order.
DGCA directions are issued in the interest of safety. The company cancelled certain flights due to the grounding of our aircraft, company clarifies.
Passengers have been given the option to choose another flight at no additional cost or passengers can cancel their booking & get a full refund, it added.
According to foreign brokerage Morgan Stanley Q4 may be a weaker quarter with yields down YoY. Awaits further details on the A320neo issue and maintain earnings for now.
It has maintained equal-weight on stock with target at Rs 1,213 per share and continue to assume 24 percent ASKM growth in Q4, EBITDAR at Rs 16.6 billion.
At 13:22 hrs Interglobe Aviation was quoting at Rs 1,276.20, down Re 1, or 0.08 percent on the BSE.
Posted by Rakesh Patil
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