Indigo trades lower after report of DGCA instructing co. to ground one old A320neo for every new addition

A complete action plan on engine replacement was presented to the DGCA by the airline on November 25, 2019, as per reports.

Nov 26, 2019 05:11 IST India Infoline News Service

Indigo-Airlines
Interglobe Aviation (Indigo) has been instructed by the Directorate General of Civil Aviation (DGCA) to ensure that for every new A320neo plane that it adds to its fleet, it should grounds an old A320neo family aircraft with an unmodified Pratt and Whitney (PW) engine, CNBC-TV18 reported.

A complete action plan on engine replacement was presented to the DGCA by the airline on November 25, 2019, as per reports.

"Now onwards, every aircraft that is added to the existing fleet shall lead to one of those with unmodified engines to be grounded... the new aircraft may be operated on the same schedule as was being operated by the aircraft, which will be grounded," a senior DGCA official told news agency PTI.

The official further told PTI that efforts undertaken by IndiGo to replace the unmodified PW engines on its A320neo planes do not "instill enough confidence with regard to the timely completion of the said task."

Interglobe Aviation Ltd is currently trading at Rs1,423.75 down by Rs26.7 or 1.84% from its previous closing of Rs1,450.45 on the BSE.

The scrip opened at Rs1,421.45 and has touched a high and low of Rs1,438.15 and Rs1,389 respectively. So far 12,89,843 (NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs55,792.55cr.

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