Wednesday, November 08, 2017

IndiGo Airlines' Parent Stock Plunges After Passenger Manhandling Video Goes Viral

A day after a video allegedly showing ground handling staff of IndiGo manhandling a passenger went viral, shares of Interglobe Aviation Ltd, operator of IndiGo airline, fell as much as 5.3% to Rs. 1,145.55.
“The stock decline can be seen as nothing more than a knee-jerk reaction to the video,” Vishal Rampuria, an analyst at HDFC Securities, told news agency Reuters.
IndiGo has not been known for such incidents in the past, Rampuria said, adding that while this issue can cause a temporary strain on the company, it would not have a long-lasting impact on shares.
The stock has gained 47% this year up to Tuesday's close, the Reuters report added.
In the video, the passenger, Rajiv Katiyal, is first seen being stopped from entering a coach after he allegedly abused a staff member of the airline, and then being pulled back by a ground staff at the Delhi airport. Another airline employee is seen restraining the traveller.
"I was standing in the shade of a plane when a ground staff started shouting at me in a very rude manner. I asked him why don't you arrange the third bus for which we are waiting. Meanwhile, when the bus came two people said let's teach him a lesson and one of them pulled me out of the bus," the passenger, identified as Rajeev Katiyal, told a telvision channel.
08/11/17 Outlook