Tag: IndiGo

Analyst says this aviation stock can fly nearly 30% higher — Do you own it?

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Shares of domestic carrier IndiGo’s parent firm Interglobe Aviation were in focus on March 19 as brokerage firm Kotak Institutional Equities raised its target price on the stock.

The brokerage, which has maintained its buy stance on IndiGo shares, has raised its target price by over 13% to ₹4,200. This means it expects the stock to surge 29% from the last closing price on March 18.

Kotak Institutional Equities’ commentary comes as it sees supply for the airline industry growing at or below 12% till FY30 and expects IndiGo to add capacity at a similar or faster rate than the rest of the market over this period.

The brokerage noted that the current demand is not yet fully addressed. The brokerage also believes pricing would likely remain healthy over time and less prone to irrationality.

Also Read: InterGlobe Group, SpiceJet purchased electoral bonds, shows Election Commission data

Separately, the aviation regulator Directorate General of Civil Aviation (DGCA) has decided to not extend the June 1 deadline for revised Flight Duty Time Limitations (FDTL) norms that are aimed at mitigating pilot fatigue.

In a note, brokerage firm Morgan Stanley said it expects IndiGo to share details on the impact of the same and that the domestic airline may need additional 10-15% pilots. It also said that with a given tight capacity, some airlines may not be able to get all pilots.

This comes after the regulator issued a revised “flight duty time limitation” on January 8 curtailing night-time flying as well as enhanced weekly rest. The FIA includes Air India, SpiceJet, and IndiGo. Airlines, however, contended that such training would take 8-10 months.

Also Read: Fewer flyers took domestic flights in Feb, IndiGo continues to fly most passengers

The new flight duty rules rewrite the definition of the night period, extending it by an hour from 12 am-5 am to 12 am-6 am, and limiting the duty period to 10 hours. It also caps the number of landings a pilot can do to two.

Meanwhile, Morgan Stanley has maintained its 6% FY25 capacity growth target for airlines.

Track the latest stock market updates on CNBCTV18.com’s blog

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

InterGlobe Group, SpiceJet purchased electoral bonds, shows Election Commission data

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The electoral bonds data made public by the Election Commission of India after the apex court’s order has revealed two Indian airlines in total purchased bonds worth ₹56.65 crore. While bonds purchased by IndiGo and it’s sister companies and allegedly it’s promoter sums up to ₹56 crore, SpiceJet purchased bonds worth ₹65 lakh.

IndiGo was founded by Rahul Bhatia and Rakesh Gangwal in 2006 and is currently India’s largest airline in terms of market share and fleet size with over 300 aircraft.

Interglobe Enterprises as per the website is a ‘conglomerate’ with business in aviation, hospitality and logistics.

As per the data, InterGlobe Air Transport Ltd  purchased 11 electoral bonds on  May 10, 2019. The value of each bond was ₹1 crore each, taking the total to ₹11 crore. IndiGo airlines over the years has taken the full advantage of the vacuum in the market as many big airlines shut in India over the years.

Moreover IndiGo in December 2019 became the first Indian airline to operate 1,500 daily flights.

On December 31, 2019, it became India’s first airline to have a fleet of more than 250 aircraft.

InterGlobe Real Estate Ventures which is part of the Interglobe ‘conglomerate’ purchased 20 electoral bonds on May 10, 2019.

Each bond value was ₹1 crore each, taking the total to ₹20 crore.

As per secondary research sources, directors of InterGlobe Real Estate Ventures Private Limited include Rohini Bhatia who is the wife of promoter Rahul Bhatia. Rohini Bhatia is the chairperson of the CSR committee of the company. She is also the chairperson of InterGlobe Foundation, the philanthropic arm of InterGlobe Group.

Interglobe Aviation under which the low cost carrier IndiGo operates, purchased 5 bonds worth ₹1 crore each on October 23, 2023. Total bonds worth ₹5 crore were purchased by the entity. IndiGo currently has a fleet size of 350 aircraft, and operates over 2000 daily flights and flies to 87 domestic and 33 international destinations.

The data also revealed that an individual named Rahul Bhatia purchased electoral bonds worth ₹20 crore. 29 electoral bonds were purchased on April 7, 2021, of which the value of 19 bonds was ₹1 crore each and value of 10 bonds was ₹10 lakh each, taking the total to ₹20 crore. If the said Rahul Bhatia is the promoter of IndiGo, then one can clearly see that, the total electoral bonds purchased by the promoter, IndiGo and it’s sister companies sums up to ₹56 crore.

On the other hand, Ajay Singh led SpiceJet Airlines also purchased electoral bonds in three different tranches. Till a few years back the airline used to be the top 3 airlines in India and now has fallen to the 5th rank in terms of market share.

The ECI data revealed that SpiceJet in total purchased 20  bonds in 2021 worth ₹65 lakh.

In the first tranche, 7 bonds were purchased on January 8, 2021, 2 bonds were worth ₹10 lakh each and 5 bonds were worth ₹1 lakh each, taking the total to ₹25 lakh.

On April 9, 2021, 6 bonds were purchased by the budget carrier. Five bonds worth ₹1 lakh and one bond worth ₹10 lakh were purchased, taking the total to ₹25 lakh. The last set of bonds were bought on July 9, 2021, 2 bonds worth ₹10 lakh each and 5 bonds worth ₹1 lakh each. In total SpiceJet purchased bonds worth ₹65 lakh.

CNBC-TV18 has written to IndiGo and SpiceJet seeking comments. Comments are awaited.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Fewer flyers took domestic flights in Feb, IndiGo continues to fly most passengers

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The domestic airline traffic rose more than 4% annually in February, however, fewer people decided to travel via flights last month compared to January 2024 as the traffic dropped 3.7% on a month-on-month basis, data released by the Directorate General of Civil Aviation (DGCA) showed on March 15.

DGCA data also showed that domestic airlines flew 257.78 lakh air passengers between January – February 2024 as against 246.11 lakh during the corresponding period of the previous year.

IndiGo continued to be air passengers’ top choice in February even as its market share declined marginally to 60.1% from 60.2% in January. IndiGo lost market share after its On-Time Performance dropped to 43.7% on January 17, the lowest in the industry after the airline, and its operations were hit for two weeks due to fog-related disruptions in northern India.

Vistara’s market share in February remained unchanged at 9.9% and the airline flew 12.55 lakh passengers in the month. Air India’s market share rose in February to 12.8% from 12.2% last month. The market share of AIX Connect, which is also part of the Tata group-owned airlines, remained unchanged at 6.1%, as the carrier served 7.68 lakh passengers in February. Overall Tata Group’s airline market share now stands at 28.8%

SpiceJet’s market share, however, marginally slipped to 5.2% from 5.6% in January. Akasa Air’s market share stood at 4.5%.

These numbers are from the month in which Vinay Dube, the founder and CEO of Akasa Air, stepped in to address rumours about a shortage of pilots. Numerous posts on the social media platform X (formerly Twitter) claimed that Akasa Air’s flights were cancelled on February 11 and 12 due to a shortage of pilots.

Meanwhile, SpiceJet earlier this week announced that it has finalised lease agreements for 10 aircraft to augment capacity to prepare for the upcoming summer schedule.

It must be noted that aviation consultancy firm CAPA Advisory had in November 2023 given guidance that close to 200 aircraft from India’s operational fleet were expected to be grounded by the end of the 2023-24 fiscal.

In terms of punctuality, AIX Connect was the most punctual airline operating in India in February and overtook Akasa Air, as per the aviation regulator’s data. AIX Connect turned in an on-time performance of 73.5% at the four metro airports – New Delhi, Bengaluru, Hyderabad and Mumbai.

Akasa Air and IndiGo were second and third, followed by Vistara. Airlines’ on-time performance rose in February after heavy fog forced flight delays throughout December and January.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Newsbreak confirmed, Rakesh Gangwal sells 5.8% in IndiGo for ₹6,785 crore

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The block deal data released by BSE confirms CNBC-TV18‘s newsbreak. As per the disclosure, this latest sale was executed at an average price of ₹3,015.52 per share, surpassing the floor price of ₹2,925 by 3%. The transaction, valued at ₹6,785 crore, was facilitated through a series of block deals

Of a total of 2.25 crore shares sold by Rakesh Gangwal, 21 lakh shares have been bought by Morgan Stanley Asia (Singapore) PTE. However, details regarding the purchasers of the remaining shares remain undisclosed.

Initially, the plan for this tranche was to sell a 3.3% stake, but this figure was eventually elevated to 5.8%. Following this stake sale, Gangwal’s holding in this airline company will reduce to 19.2% from the 25% that he held as of December 2023.

This move is part of a broader strategy by Gangwal, who has been reducing his stake in the company through a series of sales that began in September 2022. To date, he has sold approximately 18% of his stake across four transactions, each at higher prices

Gangwal’s journey of divestment started with a 2.7% stake sale at ₹1,850 per share and was followed by subsequent sales at increasingly higher prices. In February 2023, he pared 3.7% at ₹1,887 per share and in August 2023, sold a 5.8% stake at a price of ₹2,400 per share.

This series of stake sales follows Gangwal’s departure from the board of InterGlobe Aviation in February 2022, when he announced plans to gradually reduce his family’s stake in the company.

Shares of InterGlobe Aviation have seen a surge of 7% from intra-day lows to settle 3.6% higher at ₹3,218.55 apiece at the close of the March 11 session. And, it’s now 2% away from the record level of ₹3,300 per share hit in February this year.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

IndiGo Block Deal: 6.7% equity worth ₹7,825 crore changes hands

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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As many as 2.6 crore shares or 6.7% equity of InterGlobe Aviation worth Rs ₹7,825 crore changed hands in block deals on Monday, March 11.

The official buyers and sellers in the transaction are not known yet.

Earlier sources had told CNBC-TV18 that Rakesh Gangwal, the promoter of InterGlobe Aviation, the parent company of IndiGo Airlines, was to sell up 5.8% stake in the airline.

The size of the stake sale had been raised from 3.3% to 5.8% and the total size of the block deals was likely to be Rs 6,581 crore, sources had said.  The floor price was set at ₹2,925 per share, with a 5.8% discount to CMP, the sources said.

As of December 2023, Gangwal held 25.2% stake in InterGlobe Aviation. The sources said that after the stake sale, his holding would reduce to 19.4%.  There would be a 150-day lock-in period for further stake sale in the aviation company.

Gangwal had relinquished his position on Interglobe Aviation’s board in February 2022 and had unveiled plans to gradually reduce his family’s stake.

Previously, in February, the Gangwal family had divested a 4% stake in Interglobe Aviation for ₹2,900 crore. Subsequently, in September, they sold a 2.8 percent stake valued at ₹2,000 crore.

The most recent block deal occurred in August 2023, marking the largest one yet, with the Gangwals offloading shares worth $450 million.

Shares of InterGlobe Aviation were 0.33% lower at ₹3,092.6 apiece at 9.20 am on March 11.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

IndiGo co-founder Rakesh Gangwal likely to sell higher stake of 5.8% – sources

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Rakesh Gangwal, the co-founder of IndiGo, has reportedly increased his stake sale size from 3.3 percent to 5.8 percent in Interglobe Aviation, the parent company of the budget airlines, according to CNBC-TV18’s sources.

This proposed equity sale aims to amass nearly Rs 6,600 crore, with a floor price set at Rs 2,925 per share, as detailed in the report.

Earlier, on March 7, Moneycontrol had reported, citing individuals familiar with the matter, that Gangwal was mulling over selling a 3.3 percent stake in Interglobe Aviation.

According to the latest exchange data, Gangwal and his family trust collectively hold approximately 25 percent of Interglobe Aviation. Gangwal had relinquished his position on Interglobe Aviation’s board in February 2022 and had unveiled plans to gradually reduce his family’s stake.

Previously, in February, the Gangwal family had divested a 4 percent stake in Interglobe Aviation for Rs 2,900 crore. Subsequently, in September, they sold a 2.8 percent stake valued at Rs 2,000 crore.

The most recent block deal occurred in August 2023, marking the largest one yet, with the Gangwals offloading shares worth $450 million.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

IndiGo has added six new domestic routes — all details here

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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To tap into the summer travel rush, IndiGo on Thursday, February 29, said the airline has introduced six new domestic routes. Set to commence operations from March 31, 2024, the newly announced routes include direct flights between Ahmedabad-Rajkot, Ahmedabad-Aurangabad, Bhopal-Lucknow, and Indore-Varanasi.

Additionally, passengers can look forward to direct flights connecting Kolkata with Srinagar and Jammu, scheduled to begin April 10 and April 21, 2024, respectively. A connecting flight between Kolkata and Jammu via Srinagar will also be available starting April 10, 2024.

Here is the full list of timings and schedule:

The airline’s decision to introduce these routes aligns with the evolving landscape of domestic travel in India. As per a report by CAPA, air passenger traffic is projected to surge, reaching 860 million by 2030.

Vinay Malhotra, Head of Global Sales at IndiGo, expressed enthusiasm about the new routes, emphasising the airline’s dedication to meeting the evolving needs of travellers. “As the vacation season approaches, we endeavour to offer even more options to explore new destinations within India by IndiGo.”

Travellers keen on exploring these new destinations can conveniently book their tickets through IndiGo’s official website, www.goIndiGo.in.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

WATCH: Passenger discovers cockroaches crawling through food area in IndiGo plane; airline responds

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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A video showing a cluster of cockroaches crawling through the food area in an IndiGo flight has left netizens disgusted. The clip, captured by a passenger travelling on the flight, not only raised concerns about cleanliness and hygiene standards but also prompted swift action from the airlines to address the issue.

Journalist Tarun Shukla, on Thursday February 22, shared the video on his X, saying, “Cockroaches in the food area of a plane (or anywhere, for that matter) are truly awful. One hopes IndiGo takes a hard look at its fleet and checks how this even happened, given that it normally flies relatively new Airbus A320s.”

Cockroaches and in the food area of a plane (anywhere for that matter) are just truly awful.

One hopes @IndiGo6E takes a hard look at its fleet and checks how did this even happen given that it normally flies relatively new @Airbus A320s :

✈️ pic.twitter.com/78K69PYj6w

— Tarun Shukla (@shukla_tarun) February 22, 2024

Soon after the video was shared on X, it started going viral before making it to other platforms as well. The video sparked a public outcry over the hygiene standards in IndiGo flights.

Also Read: IndiGo in talks with government to minimise Mumbai Airport cancellations

The low-cost airline immediately acknowledged the issue, assuring passengers of swift action to ensure the cleanliness of the aircraft. The journalist, in another tweet, shared IndiGo’s response. “Our staff promptly took the necessary action onboard. As a precautionary measure, we immediately cleaned the entire fleet and carried out fumigation and disinfection procedures,” IndiGo said.

IndiGo says :

We are aware of the video that was circulated on social media showing an unclean corner in one of our aircraft.

Our staff promptly took the necessary action onboard. As a precautionary measure, we immediately cleaned the entire fleet and carried out fumigation…

— Tarun Shukla (@shukla_tarun) February 22, 2024

“We maintain the highest standards of cleanliness and hygiene to ensure a safe, hassle-free experience and regret any inconvenience caused to the passengers,” it further said.

Not long ago, another video of a passenger being served contaminated sandwiches had gone viral. Upon discovering the worms, Kushboo Gupta, a professional dietitian, shared the video of the food served to her on her Instagram handle. The video led to widespread criticism of the airline.

IndiGo, in response to the video, issued an official statement in which it apologised to the passenger.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

IndiGo passengers gripped by fear as flight faces turbulence — video goes viral

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow