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.
Civil aviation minister Ashok Gajapathi Raju on Wednesday strongly condemned the assault on the passenger and has sought an independent report from aviation regulator DGCA, saying that fisticuffs are not acceptable in a civilised society.
"In a civilised society fisticuffs have to be condemned ...Action has to be taken," Raju told reporters.
The Director General of Civil Aviation has been asked to submit an independent report on the incident, he said while stressing that such barbarous things should not happen.
IndiGo on Tuesday apologised for the incident, which happened on October 15.
Soon after the video surfaced, minister of state for civil aviation Jayant Sinha condemned the incident and has sought a report from the airline.
"IndiGo passenger incident from Oct 15 is deplorable and unfortunate. Passenger safety and security is our top-most priority. MoCA (Ministry of Civil Aviation) has already asked for a detailed report from Indigo by tomorrow," Sinha tweeted. IndiGo president and whole time director Aditya Ghosh apologised to the passenger and said stern action was taken against the staff.
(With PTI inputs)
