IndiGo shares fly low on plans to cancel 6-12 flights from Mumbai everyday

Shares of IndiGo operator InterGlobe Aviation shares fell 2 percent in trade on February 15. The company is in talks with the government to reduce cancellations to and from the Mumbai airport.

Sources told CNBC-TV18 that IndiGo is likely to cancel around six to 12 flights from the Mumbai airport, as per government directives. As talks progress, the operator plans to reduce the number of cancelled flights.

As of 2.15pm, shares of the airline were trading at Rs 3,035.85 apiece, lower by 1.9 percent on the NSE from the previous session’s closing price.

Singapore-headquartered BOC Aviation said it has entered into a finance lease transaction with InterGlobe Aviation Ltd on February 14. The deal has been signed for four Airbus A320NEO aircraft.

“We are pleased to be closing another four finance leases with IndiGo,” said Steven Townend, chief executive officer and managing director, BOC Aviation.

On February 9, a parliamentary panel proposed route-specific capping of airfare. The panel also proposed the creation of a separate entity to regulate and control air ticket prices, as customer concerns over surging airfares increased.

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The parliamentary panel said based on the response from the civil aviation ministry on airfares, the airlines were not adequately self-regulating ticket prices in an effective manner.

The panel said there were a series of incidents wherein there was an abnormal increase in airfares, specifically around the festive season or specific holidays. As a result, it concluded the DGCA should be empowered to regulate tariffs, since the airlines failed to keep a check.

Over the past six months, the stock has gained over 23 percent against an 11 percent rise in the Nifty during the same time period.

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