New Delhi: India’s aviation regulator set a record on Saturday ₹IndiGo was fined Rs 22.2 crore and issued a warning to six senior executives, including the chief operating officer, after its investigation found that the airline suffered an operational meltdown in December due to its “focus on maximum utilization” of crew and aircraft through aggressive cost cutting, leaving over 300,000 passengers stranded.
A four-member investigation committee of the Directorate General of Civil Aviation (DGCA) determined that “over-optimization of operations, inadequate regulatory preparedness as well as deficiencies in system software support and deficiencies in management structure and operational controls” led to the crisis, in which 2,507 flights were canceled and 1,852 flights were delayed between December 3 and 5 last year.
The findings confirm warnings from pilot unions and aviation experts that IndiGo’s pursuit of maximum crew and aircraft utilization with minimal operational buffers has created a crisis that could have been avoided, especially since the strict crew rest (FDTL) rules were unveiled more than two years before they came into force.
According to a government release, the committee said, “Crew rosters were designed to maximize 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 flexibility.”
According to the investigation report submitted to the Civil Aviation Ministry, the airline’s management “failed to adequately identify planning deficiencies, maintain adequate operational buffers and effectively implement the revised flight fee time limit provisions”, resulting in “extensive flight delays and mass cancellations”.
The regulator warned six senior executives, including chief operating officer Isidre Porcaras Oria, and ordered the senior vice president of the operations control center removed from operational responsibilities and barred from any accountability position, while chief executive Peter Elbers was given a formal warning for inadequate oversight.
It also asked the airline to deposit ₹Rs 50 crore in bank guarantee, which will be returned if the airline makes necessary improvements in its operations.
IndiGo’s board issued a brief statement on Saturday, saying it was “committed to taking full cognizance of the orders” and “will take appropriate steps in a thoughtful and timely manner.” “Since the disruption, a thorough review of the robustness and resilience of the internal processes at IndiGo is underway to ensure that the airline emerges stronger from these events in its pristine record of 19+ years of operations,” the airline said.
The airline, which commands 60% of India’s domestic market and operates more than 2,000 flights daily, has been directed to curtail operations and submit fortnightly compliance reports.
While the fine is unprecedented in India’s aviation sector, it represents only 0.31% ₹The airline reported a net profit of Rs 7,263 crore in the financial year ending March 2025. Aviation experts compared it to a slap on the wrist for a carrier that makes billions in profits annually.
“DGCA talks about compensation, but a ₹A fine of Rs 22 crore is negligible for an airline of IndiGo’s size. This is equivalent to the cost of employing about 20 pilots, which makes no sense for an airline,” said Mark Martin of Martin Consultancy.
A former senior bureaucrat and a serving government official, both requesting anonymity, agreed that the penalty was light. “The fine amount does not do justice to the problems faced by lakhs of passengers,” the former official said.
According to an official on condition of anonymity, the airline’s exemption from FDTL rules will not be extended beyond February 10.
The FDTL rules include strict limits on pilot duty hours and mandatory rest periods, including increasing weekly rest from 36 to 48 hours, expanding night-duty definitions, and restricting night landings to two per week from the previous six.
DGCA did not respond to requests for comment on this aspect.
The regulator directed that Jason Herter, senior vice president of the operations control center, be relieved of operational responsibilities and barred from any accountability position for “failure in systemic planning and timely implementation of the amended FDTL provisions.” Warnings were also issued to the deputy chief of flight operations, assistant vice president of crew resource planning and the director of flight operations.
IndiGo has been directed to “take appropriate action against any other personnel identified through internal investigation and submit a compliance report to DGCA”.
On the ministry’s instructions, the DGCA said it had also launched an internal investigation “to identify and implement systemic reforms within the DGCA”, a rare admission that regulatory oversight failures contributed to the crisis.
Record Financial Penalties
₹Includes fine of Rs 22.2 crore ₹1.80 crore more for six systemic violations ₹Fine of Rs 20.40 crore for continuous non-compliance of fatigue rules from December 5 to February 10. Six violations, each of which attracted ₹The Rs 30 lakh penalty includes: Failure to establish and effectively implement FDTL compliance plans with adequate buffer margins; Failure to balance business imperatives with crew effectiveness; non-compliance with instructions outlining the responsibilities of operating personnel; Improper delegation of operational control; Failure of accountable management to ensure DGCA standards; and incumbents failing to discharge duties with adequate understanding of safety standards.
Regulator imposes continued non-compliance fines ₹Citing violation of provisions limiting night-duty operations, the airline obtained a relaxation of Rs 30 lakh per day for 68 days during the crisis.
Apart from financial penalty, DGCA has also ordered Indigo to be mortgaged. ₹The Rs 50 crore bank guarantee which the regulator has termed the “Indigo Systemic Reform Assurance Scheme” is strictly linked to verified implementation of reforms in leadership and governance, manpower planning, digital systems and board-level oversight with a phased release.
The bank guarantee will be released in installments – ₹Rs 10 crore on certification of leadership reforms within three months. ₹Rs 15 crore for continued compliance of manpower planning reforms in six months. ₹15 crore on approval of digital system upgrade within nine months, and ₹10 crore after six months of continuous follow up over a period of 9-15 months.
IndiGo said it is “committed to taking full cognizance of the orders” and will “take appropriate steps in a thoughtful and timely manner.” The airline said that an internal review of its processes is underway since the disruption to ensure that the airline emerges from these incidents stronger than ever with its pristine record of 19+ years of operations.