Jet suspends operation, airways stocks tank 30%
Jet Airways scrips tanked over 30 per cent on the BSE during the early trade on Thursday, after suspension of operations over refusal of lenders to provide emergency funding.
 
Jet scrips hit a low of Rs 168.60 apiece from it's previous close of Rs 241.85. 
 
At 10.43 a.m., Jet was trading at Rs 175.30, down Rs 66.55 or 27.52 per cent. 
 
Jet Airways announced the temporary suspension of all flight services from Wednesday night as it failed to secure interim funding for maintaining c
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
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    Aviation issues to impact passenger growth: Report
    The growth in air passenger volume in India is likely to slow down in the near term due to the recent problems in the country's aviation sector including frequent grounding of flights, a report by India Rating & Research said on Wednesday.
     
    According to the report, growth in January and February 2019 was muted at 6.5 per cent on a year-on-year (YoY) basis compared to average growth of 18.5 per cent over the last five years for the two months. 
     
    "Airlines are grounding flights due to multitude of reasons (financial trouble, shortage of pilots and technical issues in flights). While this could aid airports during ongoing expansions in managing loads, the pax growth could dampen during the season of travel (April and May)," it said.
     
    The capacity constraints and lack of slots at few airports also restrain the pax growth, it added. 
     
    As per the report, the agency does not expect a material stress on airport ratings, given the available headroom, it would reassess the ratings if there is a continued slide in the traffic. 
     
    "Globally, an individual airline's bankruptcy has limited impact on traffic performance. In the US, nearly every major domestic carrier has filed for bankruptcy at some point in the past," the report said.
     
    However, these events could lead to only short-term disruptions, given that airports with large catchment areas and other operating airlines can absorb traffic to an extent. 
     
    "A similar episode of Kingfisher Airlines Ltd highlights the ability of other airlines to adopt to the difficult times and enlarge the market share," it said.
     
    Major Indian airline Jet Airways is going through severe troubled times as it is debt-ridden and has been unable to pay the dues of aircraft lessors and also its employees.
     
    On Wednesday, Jet announced that it has temporarily suspended all flight operations from the night as the airline failed to secure an interim funding of Rs 400 crore for maintaining even bare minimum operations.
     
    Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
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    DGCA orders special audit of IndiGo as A320 Neo woes rise
    India's civil aviation regulator has ordered a special audit of private carrier IndiGo, due to re-occurring glitches and non-reporting of incidents with its A320 Neo fleet.
     
    Accordingly, the Directorate General of Civil Aviation (DGCA) ordered a special safety audit of IndiGo after several lapses of non-reporting and irregular reporting of IndiGo A320 Neo incidents come to light.
     
    The last such lapse was reported by IANS on April 12, when IndiGo's Delhi-Mumbai flight had to perform a mid-air "turn back" manoeuvre on April 10.
     
    That time, sources privy to development told IANS that the manoeuvre was performed after excessive vibration was noticed from aircraft's engine number two.
     
    However, an airline official said that the aircraft suffered a bird hit en-route from Delhi to Mumbai.
     
    According to sources, the DGCA has also sent show-cause notices to IndiGo's COO and Head of Engineering.
     
    "Currently, airworthiness and air safety teams of the DGCA are conducting complete review of engineering and maintenance processes," a source told IANS.
     
    The three day audit was started on Monday.
     
    On its part, IndiGo said that confirmed that an ongoing DGCA audit is being conducted combined with the annual main base audit.
     
    "IndiGo has received a limited number of show cause notices. IndiGo has responded accordingly and we can only comment on this matter after we have a discussion with the DGCA on this matter," the airline said in a statement.
     
    More than 18 cases of midair engine failures or problems have been reported in the A320 Neos operated by IndiGo and GoAir since January, industry sources said.
     
    Excessive vibration resulting in midair turn backs has emerged as the most common and serious safety issue with the P&W engine powered Neos of late.
     
    Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
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