Investors are evidently less worried about future prospects of InterGlobe Aviation Ltd, as compared to, say, those of SpiceJet Ltd.
In the past five weeks, the latter’s shares have fallen nearly 60%, while those of InterGlobe have fallen 33%. InterGlobe runs IndiGo, which is India’s largest airline with a 48% market share for domestic air travel. “IndiGo is in the best shape with cash availability of 6-7 months whereas other airlines can survive for 1-2 months only," says Varun Ginodia, an analyst at Ambit Capital Pvt.
Ltd. Analysts at Kotak Institutional Equities echo the view: “Indigo’s sufficient cash buffer ( ₹9400 crore as of December 2019) should be enough to weather this storm, though other airlines will need external support in the