InterGlobe Aviation Ltd, the parent company of IndiGo, traded lower on Wednesday, Dec 10, slipping 1.48% to Rs 4,894 in early market hours — a decline of nearly 3% from its intraday highs — after the government directed the airline to reduce its scheduled flights by 10%.
The directive comes in the wake of IndiGo cancelling over 2,000 flights last week due to what officials termed poor pilot roster planning, leaving tens of thousands of passengers stranded. Civil Aviation Minister Ram Mohan Naidu announced on X that the cut, initially proposed at 5%, has now been doubled to 10% following a meeting with IndiGo CEO Pieter Elbers, who skipped a high-profile London event to address the crisis.
The move is expected to remove at least 220 flights per day from IndiGo’s network, based on its pre-November 1 schedule before new pilot duty and rest rules came into effect. The Ministry said the measure is essential to stabilise operations and reduce further cancellations.
IndiGo confirmed receiving a notice from the Directorate General of Civil Aviation (DGCA) directing the airline to implement a 10% reduction across its domestic winter schedule.
The airline cancelled more than 1,000 flights on Friday alone as part of its network reset. While CEO Elbers stated on Tuesday that operations were “fully stabilised,” investor sentiment weakened as concerns grew over potential revenue impact due to reduced capacity.
InterGlobe Aviation shares responded with a sharp drop from morning highs, reflecting market caution over operational disruptions and regulatory intervention.
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