IndiGo shares jump after airline names Willie Walsh as CEO

Shares of IndiGo gained 4.4% on ​Wednesday after the airline appointed industry ‌veteran Willie Walsh as its new ​chief executive, just weeks after the ⁠departure of long-time CEO Pieter Elbers.

Jefferies described the appointment as a “remarkably swift” resolution for an airline of ‌IndiGo’s scale and complexity, likely to minimize any leadership vacuum and ensure ‌continuity in execution.

Mr. Walsh, who brings four ‌decades ⁠of aviation experience, is expected to steer ⁠IndiGo through its current growth phase, operational stabilisation and international expansion, Jefferies said.

Mr. Walsh’s term as head of the ​International Air Transport Association (IATA) ends ‌on July 31, and he is expected to join IndiGo by August 3, the airline said in a statement.

IndiGo commands ‌about 65% of India’s fast-growing aviation market. ​However, the carrier faced its biggest crisis in December, cancelling more than ⁠4,500 flights after failing to prepare for new pilot rest rules.

Regulators reprimanded several senior executives, ‌including Mr. Elbers, citing “inadequate overall oversight of flight operations and crisis management”.

Like its peers, IndiGo has also been hit by higher costs as flights are rerouted due to the conflict in the Middle East and Pakistani airspace ‌restrictions.

Jefferies also noted that key priorities for the ​airline now include improving reliability, addressing crew issues, and balancing its low-cost model ⁠amid ongoing cost pressures.

IndiGo shares are down 19% ⁠so far this year, making it one of the worst performers on ‌the Nifty 50.

The airline is currently valued at 1.59 trillion rupees ($16.97 billion).