The Ministry of Civil Aviation on Monday denied reports suggesting that the government plans to mandate Indian nationals as chief executive officers of domestic airline carriers, a clarification that helped ease investor concerns and lift airline stocks. Shares of InterGlobe Aviation Ltd, the parent company of IndiGo, rebounded more than 1.5% following the ministry’s statement.
Earlier in the day, a leading media organisation had cited government sources claiming that the Aviation Ministry had indicated to airlines the need for Indian CEOs at Indian carriers, including Air India and IndiGo. The report triggered uncertainty in the market, given that both major airlines are currently led by foreign executives with long global aviation experience.
Responding to the report, the Ministry of Civil Aviation categorically denied that any such requirement had been communicated to airlines. Officials clarified that there is no proposal or directive mandating Indian CEOs for Indian airline carriers, effectively dispelling speculation around a policy shift in leadership norms.
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Following the clarification, InterGlobe Aviation shares recovered losses and were trading at around ₹4,962.30 apiece, up over 1.5% in afternoon trade. The rebound reflected investor relief, as leadership stability is viewed as a key factor for airline operations amid a competitive and capital-intensive aviation market.
IndiGo is currently led by Pieter Elbers, a Dutch airline executive with more than three decades of experience in the aviation industry. Elbers was appointed as CEO of India’s largest airline in 2022, after previously serving in senior leadership roles at KLM Royal Dutch Airlines.
Air India, which returned to the Tata Group in 2022, is headed by Campbell Wilson, who serves as CEO and Managing Director. Wilson joined the national carrier after a 26-year career with Singapore Airlines, where he held several senior positions. The situation remains under watch as the story continues to develop, but the government’s clarification has, for now, eased concerns in the market.
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