Indigo is one of a handful of airlines that are rerouting and canceling flights to avoid Pakistan’s airspace.
Nicolas Economo |NurPhoto | Getty Images
Shares of InterGlobe Aviation, which runs India’s largest airline IndiGo, rose more than 9% Wednesday, a day after it named industry veteran William Walsh as its new chief executive.
Walsh, 64, is currently the director general of the International Air Transport Association and will join the Indian airline in early August. Walsh has served as the CEO of British Airways.
His appointment comes weeks after Pieter Elbers suddenly stepped down as IndiGo’s top boss following scrutiny over the carrier’s failure to plan properly for pilot rest and duty rules, which led to thousands of flight cancellations in December. Elbers exited the company last month, citing “personal reasons.”
Indian airline companies have been particularly affected due to the airspace disruptions caused by the Middle East conflict.
On March 18, Moody’s-backed Indian rating agency ICRA placed IndiGo’s long-term credit rating “on Watch with Negative Implications” owing to the “expected pressure on the airline’s operating and financial performance arising from the escalation of the geopolitical conflict in West Asia.”
IndiGo commands nearly 65% of India’s aviation market share, while Air India is a distant second at about 27%, according to data from the country’s aviation regulator.
Walsh’s experience of “managing large-scale airline operations and navigating complex market dynamics make him ideally suited to strengthen and lead IndiGo for continued growth,” said Vikram Singh Mehta, IndiGo’s chairman, in an exchange filing on Tuesday.
Walsh has also served as CEO of IAG, the parent company of British Airways, Iberia, Vueling, Aer Lingus, LEVEL, IAG Loyalty and IAG Cargo.
