InterGlobe Aviation skids on report DGCA grounds A320neo aircraft

InterGlobe Aviation fell 1.62% to Rs 1,256.45 at 10:52 IST on BSE after India's aviation regulator reportedly grounded the company's eight A320Neo planes with faulty Pratt & Whitney engines.

Meanwhile, the S&P BSE Sensex was up 88.06 points, or 0.26% to 34,006.

On the BSE, 18,000 shares were traded in the counter so far compared with average daily volumes of 1.28 lakh shares in the past two weeks. The stock had hit a high of Rs 1,262.50 and a low of Rs 1,238 so far during the day. The stock hit a 52-week high of Rs 1,358.65 on 27 February 2018. The stock hit a 52-week low of Rs 874.65 on 15 March 2017.

According to media reports, the Director General of Civil Aviation (DGCA) on Monday, 12 March 2018, grounded a few Airbus A320neo aircraft currently operating in the country due to the ongoing Pratt & Whitney engine issue. DGCA asked IndiGo to ground eight of its A320neo aircraft until further notice.

The civil aviation authority has reportedly said that no concrete proposal has been given by Pratt & Whitney yet on when the engine woes will be resolved. All the grounded A320neo aircraft are fitted with Pratt & Whitney engines, reports added.

InterGlobe Aviation has yet to reply to a stock exchange notice issued late on Monday, 12 March 2018, seeking clarification on the media reports.

Net profit of Interglobe Aviation rose 56.39% to Rs 762.03 crore on 23.89% rise in net sales to Rs 6177.88 crore in Q3 December 2017 over Q3 December 2016.

InterGlobe Aviation is the operator of low cost passenger airline IndiGo, which is India's largest passenger airline with a market share of 39.7% as of January 2018.

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