INSUBCONTINENT EXCLUSIVE:
Mumbai: Shares of Interglobe Aviation slumped on Wednesday after a brokerage report trimmed its target share price for the airline and
unconfirmed media reports of the Enforcement Directorate (ED) summoning its top management surfaced later in the day
as 9 per cent before it closed 7.5 per cent down at Rs 1,136.15 on the Bombay Stock Exchange, underperforming the Sensex that rose a
While the company continues to dominate the Indian air space in terms of share in traffic, there are clear headwinds to margins, which drive
in fares to offset the negative impact on profits
However, recent trends suggest that pricing power in the Indian aviation sector is low and IndiGo has been unable to pass on the cost
pressures to customers in form of fare hikes
With competitors adding capacity over next 2-3 years, we expect aggressive pricing environment as airline operators target higher market
The ED has named rival low fare carrier AirAsia India, its parent AirAsia Berhad and some of its executives in an FIR, filed a case against
erstwhile south Indian carrier Paramount Airways and brought out a second chargesheet against Vijay Mallya whose Kingfisher Airlines shut
down in 2012.
In a filing to the BSE post market hours, IndiGo said it had not received any such summons.
