Shares of Interglobe Aviation Ltd, operator of IndiGo airline, fell as much as 5.3 per cent to Rs. 1,145.55, on alleged assault on a passenger. The stock posted biggest intraday percentage drop since September 25.
A video allegedly showing security staff of IndiGo manhandling a passenger went viral on Monday, prompting the federal government to launch an investigation into the incident.
In the video, widely shared on social media and televised on local news channels, at least two IndiGo staff members can be seen pinning a passenger down on the ground after an argument on the tarmac at New Delhi airport.
The male passenger shouts and attempts to fight back but is overpowered by the IndiGo staff. Reuters could not independently verify the authenticity of the video.
IndiGo, which flies about one in every two passengers in the country, said in a statement that it had apologised to the passenger after the incident and has taken action against the staff.
“Whatever may have been the provocation, our staff were completely out of line and didn’t follow laid down procedures,” Indigo President Aditya Ghosh said. “Even while the investigation was going on we immediately suspended the involved employees.”
IndiGo promoter Rahul Bhatia today met the Minister for Civil Aviation, Ashok Gajapathi Raju, in New Delhi. The meeting comes hours after the youtube video appeared of a passenger being beaten by a IndiGo staffer.
“The stock decline can be seen as nothing more than a knee-jerk reaction to the video,” Vishal Rampuria, an analyst at HDFC Securities said.
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 per cent this year up to Tuesday’s close.