IndiGo is one of the few airlines to reroute or cancel flights to avoid Pakistan’s airspace.
Nicholas Economo | NurPhoto | Getty Images
Shares in Interglobe Aviation, which operates India’s largest airline IndiGo, rose more than 9% on Wednesday, a day after the company named industry veteran William Walsh as its new chief executive.
Mr. Walsh, 64, currently serves as executive director of the International Air Transport Association and is scheduled to join the Indian airline in early August. Mr. Walsh previously served as CEO of British Airways.
His appointment comes weeks after Peter Elbers abruptly resigned as head of Indigo following scrutiny over the airline’s failure to properly plan for pilots’ rest and work rules, which led to thousands of flight cancellations in December. Elbers left the company last month, citing “personal reasons.”
Indian airlines have been particularly hard hit by 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 “subject to watch with negative implications” due to “expected pressures on the airline’s operating and financial performance due to escalating geopolitical conflicts in West Asia.”
IndiGo has nearly 65% of India’s aviation market share, while Air India is in second place with about 27%, according to data from the country’s aviation regulator.
IndiGo chairman Vikram Singh Mehta said in an exchange filing on Tuesday that Walsh’s “experience managing large airline operations and navigating complex market dynamics makes him the ideal person to strengthen IndiGo and guide its continued growth.”
Mr. Walsh also served as CEO of IAG, the parent company of British Airways, Iberia, Vueling Airlines, Aer Lingus, Rebel, IAG Loyalty and IAG Cargo.
