India's aviation regulator, the Directorate General of Civil Aviation (DGCA), on Monday reportedly warned IndiGo that the airline's efforts to modify the glitch-prone older Pratt & Whitney (PW) engines installed on Airbus A320Neo aircraft were not satisfactory. This means a significant portion of IndiGo's fleet could be grounded if the carrier fails to meet 31 January, 2020, deadline, media reports suggested.

The regulator said that for every new A320Neo aircraft that IndiGo adds to its fleet henceforth, it would have to ground a similar aircraft with unmodified engines. The grounded aircraft can be allowed a fresh schedule once its engines are replaced, DGCA said. This process may remain in force till all the engines in the fleet have been replaced.

On 1 November, DGCA had directed IndiGo to replace P&W engines with modified LPT (low pressure turbine) on 97 Airbus A320Neo aircraft by 31 January, following a series of engine incidents.

InterGlobe Aviation reported a consolidated net loss of Rs 1061.99 crore in Q2 September 2019 as against a net loss of Rs 651.54 crore in Q2 September 2018. Consolidated net sales increased by 31% to Rs 8105.19 crore in Q2 September 2019 over Q2 September 2018.

Indigo is India's largest passenger airline with a market share of 48.2% as of September 2019.

On the technical front, the stock's RSI (relative strength index) stood at 39.71. The RSI oscillates between zero and 100. Traditionally the RSI is considered overbought when above 70 and oversold when below 30.

The stock was trading below its 50-day placed at Rs 1626.38 and 200-day moving average (DMA) placed at Rs 1506.19.

The counter witnessed steep volatility over the past two months. The scrip corrected 25.37% in 18 sessions to 1,410.30 on 29 October 2019 from its close of Rs 1889.65 on 30 September 2019. From there on, the scrip bounced back 8.49% to Rs 1,530.10 on 8 November 2019.

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Interglobe Aviation announced that IndiGo, today signed a one-way codeshare agreement with Qatar Airways, world's best airline as per2019 World Airline Awards. With the sale starting from today, the one-way codeshare agreementbetween the two carriers will enable Qatar Airways to place its code on IndiGo flights between Dohaand Delhi, Mumbai and Hyderabad. This is the second codeshare agreement for IndiGo as part of itsgrowth strategy for international markets. Qatar Airways will place its code “QR” on IndiGo operatedflights between the mentioned destinations.

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IndiGo is planning an aggressive push to more international destinations and the airline's CEO Ronojoy Dutta and Qatar Airways CEO Akbar Al Baker will talk about the vision and future for both the airlines, reports suggested.

Qatar has in the past shown interest in investing in IndiGo but the Indian budget carrier has resisted, the reports added.

Shares of InterGlobe Aviation rose over 4% to hit an intraday high of Rs 1502.70. The stock has hit a low of Rs 1412.10 so far during the day.

InterGlobe Aviation reported a consolidated net loss of Rs 1061.99 crore in Q2 September 2019 as against a net loss of Rs 651.54 crore in Q2 September 2018. Consolidated net sales increased by 31% to Rs 8105.19 crore in Q2 September 2019 over Q2 September 2018.

InterGlobe Aviation is among the fastest growing low cost carriers in the world. The company has fleet of 235 aircraft and provides service to 70 destinations including 17 international cities.

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Interglobe Aviation issued a Press Release in relation to the response of the company on the DGCA directive - 'DGCA had issued a directive last week as per which we are required to have at least one LPT 3 modified engine on aircraft which has one unmodified engine more than 2900 hours by November 19, 2019. We are confident that we are able to meet this directive and are able to sustain our current schedule. Subsequently, we have received the latest directive from the DGCA on November 01, 2019, which requires that all operating A320 NEO should have both engines with LPT3 modification installed for operation post 31st Jan 2020. IndiGo currently operates on its fleet of 98 A320 NEO family with around 45% of its engines modified. We are working with both P&W and Airbus on mitigation so that we have enough modified spare engines by January 31, 2020. In the meantime, our schedule remains intact.'

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