IndiGo Airlines, which until now held the Number One position in the country, has suffered massive damage to its image due to recent developments. It is also the only airline company in India that has consistently remained profitable. Because of IndiGo, the country is now facing an aviation crisis never seen before. There is still no clarity on how many more days it will take for the situation to settle. Although the situation has slightly improved compared to the past few days, IndiGo flight services are still being cancelled on a large scale. Even though the company claims it will achieve stability by December 10, discussions suggest that the environment is not moving in that direction. Over the past few days, with hundreds of IndiGo flights being cancelled daily and due to refunds and other issues, the shares of InterGlobe Aviation, IndiGo’s parent company, fell sharply by ₹445 on the BSE on Monday and closed at ₹4,926.
At one stage, they even touched a low of ₹4,842. IndiGo shares, which had been steadily rising for several months, have been falling for the past few days. On Monday, they witnessed huge losses. Now, prominent rating agency Moody’s has responded to IndiGo’s situation. It stated that the lack of proper planning led to this condition and predicted that this would affect the company’s ability to repay its debts. It also mentioned that the company failed to respond properly to the new aviation regulations. At the same time, Moody’s downgraded the company’s Human Resources score as well as its Governance score. It stated that this could negatively impact the company’s profitability in the coming days. Due to Moody’s comments, there are expectations that InterGlobe Aviation shares may fall even further on Tuesday.