IndiGo shares drop 3% amid flight fiasco. Should you buy, sell or hold?
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Shares of InterGlobe Aviation, the parent company of India’s largest airline IndiGo, dropped 3% to their intraday low of Rs 5,270 on the BSE on Friday, December 5, after the airline began cancelling over 300 flights daily and sought regulatory relief from the Directorate General of Civil Aviation (DGCA) due to operational disruptions caused by new pilot duty-hour regulations. The DGCA is currently evaluating IndiGo’s request for a temporary exemption from recently implemented night duty rules for pilots. These rules, enforced in two phases to address pilot fatigue, include a provision introduced on November 1 that limits the number of landings a pilot can perform between 12 a.m. and 6 a.m. IndiGo has formally approached the DGCA seeking a two-month waiver from this particular clause for its Airbus A320 operations, citing the need to "reduce passenger inconvenience while maintaining safety margins." According to a DGCA statement,...