IndiGo flights disruptions are ‘credit negative’ for airline: Moody’s Ratings

Amid the ongoing cancellation fiasco at the IndiGo Airlines, the Moody’s Ratings on Monday said the widespread disruptions in IndiGo flights are “credit negative” for the airline.

“Despite temporary reprieve, failure to effectively plan for new aviation regulations is credit negative.”

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The frequent cancellations could result in financial damage from loss of revenue as well as potential penalties for cancellations, Moody’s Ratings said.

“The disruptions are credit negative because IndiGo could face significant financial damage from loss of revenue because of flight cancellations, refunds and other compensation to affected customers, along with potential penalties imposed by DGCA,” Moody’s said.

The rating agency cited the airline’s significant lapses in planning, oversigh