Record Fine for IndiGo Spotlights Flight Disruptions in India's Aviation Market

India's aviation regulator fined IndiGo $2.45 million and issued executive warnings after thousands of flight cancellations last December. The disruptions, primarily caused by poor pilot roster planning, exposed operational deficiencies in India's largest airline and led to government intervention. A review of competitive practices in the aviation market is underway.

India's aviation regulator has imposed a record $2.45 million fine on IndiGo, the country's leading airline, following mass flight cancellations last month. Senior executives received official warnings, while the head of the operations control was relieved from duty. Approximately 4,500 flights were canceled, stranding thousands of passengers and raising concerns about limited competition within India's rapidly growing aviation sector.

A probe by the Directorate General of Civil Aviation (DGCA) revealed that inadequate pilot roster planning was a major factor behind the disruptions. Stricter pilot rest and duty regulations, introduced last year, further exacerbated the airline's planning deficiencies. IndiGo, which dominates 65% of the domestic market, focused heavily on maximizing resource utilization, compromising operational resilience.

In addition to the fine, IndiGo has been directed to provide a $5.51 million bank guarantee to ensure compliance and address systemic issues. The DGCA has launched an internal inquiry to evaluate its own performance, and the government's temporary relaxation of night duty rules has faced criticism. Meanwhile, a review of potential antitrust violations by IndiGo is underway by the country's competition regulator.