IndiGo hit with record ₹22 crore fine for Dec chaos

NEW new delhi: republic of india’s air power regulator on sat imposed a register ₹22.2 crore penalty on IndiGo and issued warnings to six senior executives, including the chief operating officer, after its inquiry found the airline’s “overriding focus on maximising utilisation” of crew and aircraft through aggressive cost-cutting drove December’s operational meltdown that stranded over 300,000 passengers.The Directorate General of Civil Aviation’s (DGCA) four-member inquiry committee determined that “over-optimisation of operations, inadequate regulatory preparedness along with deficiencies in system software support and shortcomings in management structure and operational control” caused the crisis that saw 2,507 flights cancelled and 1,852 delayed between December 3 and 5 last year. The findings confirm warnings from pilot associations and aviation experts that IndiGo’s pursuit of maximum crew and aircraft utilisation with minimal operational buffers created a crisis that it could have avoided, especially since the tighter crew rest (FDTL) rules were unveiled more than two years before they came into effect.“Crew rosters were designed to maximise duty periods, with increased reliance on dead-heading, tail swaps, extended duty patterns, and minimal recovery margins. This approach compromised roster integrity and adversely impacted operational resilience,” the committee stated, according to a government release.The airline’s management “failed to adequately identify planning deficiencies, maintain sufficient operational buffer, and effectively implement the revised Flight Duty Time Limitation provisions,” resulting in “widespread flight delays and large-scale cancellations,” according to the inquiry report submitted to the civil aviation ministry.The regulator warned six senior executives, including chief operating officer Isidre Porqueras Orea, and ordered the senior vice president for operations control centre to be removed from operational responsibilities and barred from any accountable position, while chief executive Pieter Elbers received a formal caution for inadequate oversight.It also asked the airline to deposit ₹50 crore in bank guarantees, which will be refunded as and when the airline carries out necessary corrections in its operations.IndiGo’s board issued a brief statement on Saturday, saying it was “committed to taking full cognizance of the orders” and would “in a thoughtful and timely manner, take appropriate measures.” The airline said an “in-depth review of the robustness and resilience of the internal processes at IndiGo has been underway since the disruption to ensure that the airline emerges stronger out of these events in its otherwise pristine record of 19+ years of operations.”The airline, which commands 60% of India’s domestic market and operates over 2,000 flights daily, has been directed to curtail operations and submit fortnightly compliance reports.While the penalty is unprecedented in India’s aviation sector, it represents just 0.31% of the ₹7,263 crore net profit the airline recorded in the financial year ended March 2025. Aviation experts likened it to a slap on the wrist for a carrier that generates billions in annual profits.“The DGCA speaks of compensation, but a ₹22 crore penalty is negligible for an airline of IndiGo’s size. It is roughly equivalent to the cost of employing about 20 pilots, which means absolutely nothing to the airline,” said Mark Martin of Martin Consultancy.A former senior bureaucrat and a serving government official, both requesting anonymity, concurred that the fine was mild. “The fine amount doesn’t not do justice to the issues faced by lakhs of passengers,” the former official said.According to an official who asked not to be named, the airline’s exemption from the FDTL rules will not be extended beyond February 10.The FDTL rules involve stricter limits on pilot duty hours and mandatory rest periods, including increased weekly rest from 36 to 48 hours, expanded night-duty definitions, and restrictions on night landings to two per week from six previously.DGCA did not respond to requests for a comment on this aspect.The regulator directed that senior vice president for operations control centre, Jason Herter be relieved of operational responsibilities and barred from any accountable position for “failure in systemic planning and timely implementation of revised FDTL provisions.” Warnings were also issued to the deputy head of flight operations, assistant vice president for crew resource planning, and director of flight operations.IndiGo has been directed to take “appropriate action against any other personnel identified through its internal inquiry and submit a compliance report to DGCA.”On the ministry’s directions, DGCA said it has also launched an internal inquiry “to identify and implement systemic improvements within the DGCA,” a rare acknowledgment that regulatory oversight failures contributed to the crisis.Record financial penaltiesThe ₹22.2 crore penalty comprises ₹1.80 crore for six systemic violations and ₹20.40 crore for continued non-compliance with fatigue rules from December 5 through February 10. The six violations, each attracting ₹30 lakh penalties, include: failure to establish and effectively implement FDTL compliance schemes with adequate buffer margins; failure to balance commercial imperatives with crew effectiveness; non-compliance with instructions outlining operations personnel responsibilities; improper delegation of operational control; failure of accountable management to ensure DGCA standards; and post holders failing to discharge duties with adequate understanding of safety standards.The regulator imposed the continued non-compliance penalty at ₹30 lakh per day for 68 days, citing violations of provisions limiting night-duty operations that the airline secured exemptions from during the crisis.In addition to the financial penalty, DGCA has ordered IndiGo to pledge a ₹50 crore bank guarantee under what the regulator termed the “IndiGo Systemic Reform Assurance Scheme,” with phased release strictly tied to verified implementation of reforms across leadership and governance, manpower planning, digital systems, and board-level oversight.The bank guarantee will be released in tranches — ₹10 crore upon certification of leadership reforms within three months, ₹15 crore for sustained compliance with manpower planning improvements over six months, ₹15 crore upon acceptance of digital system upgrades within nine months, and ₹10 crore after six months of continued adherence over a 9-15 month period.IndiGo said it was “committed to taking full cognizance of the orders” and would “in a thoughtful and timely manner, take appropriate measures.” The airline said an internal review of its processes has been underway since the disruption “to ensure that the airline emerges stronger out of these events in its otherwise pristine record of 19+ years of operations.