DGCA slaps IndiGo with penalties totalling Rs 22.20 crore for December flight disruptions, warns CEO, COO, other senior officials

The enforcement actions by the regulator are based on the findings of a four-member DGCA inquiry committee that was tasked with a comprehensive review and assessment of the circumstances that led to the crisis in the first week of December. The panel had submitted its report to the DGCA on December 26, and the findings and recommendations were forwarded to the Ministry of Civil Aviation (MoCA).

Message from the Chairman and Members of the Board of Directors of InterGlobe Aviation Limited 1

The inquiry committee had concluded that the primary causes for the disruption were over-optimisation of operations, inadequate preparedness along with deficiencies in system software support for the revised Flight Duty Time Limitation (FDTL) provisions, and shortcomings in IndiGo’s management structure and operational control. Civil Aviation Minister K Rammohan Naidu had assured stringent action based on the report against those found responsible for the IndiGo meltdown, saying that government action in this case will “set an example”.

“The Committee observed that the airline’s management failed to adequately identify planning deficiencies, maintain sufficient operational buffer, and effectively implement the revised Flight Duty Time Limitation (FDTL) provisions. These lapses resulted in widespread flight delays and large-scale cancellations, causing inconvenience to passengers,” the Ministry of Civil Aviation (MoCA) said Saturday.

“The Inquiry further noted an overriding focus on maximising utilisation of crew, aircraft, and network resources, which significantly reduced roster buffer margins. 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 inquiry also included within its purview long term reform measures addressing systemic issues so that such incidents do not occur in the future and passengers are not put to any inconvenience,” it added.

The airline’s board said that it, along with the IndiGo management, is “committed to taking full cognizance of the orders and will, in a thoughtful and timely manner, take appropriate measures”. Given that IndiGo commands a domestic market share of around 65 per cent, the disruption had brought India’s civil aviation operations to their knees.

“Action against officials of Interglobe Aviation (IndiGo): Caution to the CEO for inadequate overall oversight of flight operations and crisis management, Warning to the Accountable Manager (COO) for failure to assess the impact of Winter Schedule 2025 and the revised FDTL (flight duty time limitation) CAR (civil aviation requirement) leading to widespread disruptions and Warning to the Senior Vice President (OCC) with directions to relieve him of current operational responsibilities and not to assign any accountable position, for failure in systemic planning and timely implementation of revised FDTL provisions,” said MoCA, adding that warnings have also been issued to a few other senior IndiGo officials.

As for financial penalties, one-time fines totalling Rs 1.80 crore—penalty of Rs 30 lakh each on six counts of non-compliance—has been imposed on the airline by the DGCA. Additionally, IndiGo has also been slapped a daily penalty of Rs 30 lakh for 68 days—December 5 to February 10—which comes out to Rs 20.40 crore.

“The Bank Guarantee–linked reform framework of Rs 50 crore titled the IndiGo Systemic Reform Assurance Scheme (ISRAS) for IndiGo, under which phased release of the Bank Guarantee is strictly tied to DGCA-verified implementation of reforms across four pillars—leadership and governance (Rs 10 crore upon certification within 3 months), manpower planning, rostering and fatigue-risk management (Rs 15 crore linked to initial and sustained compliance over 6 months), digital systems and operational resilience (Rs 15 crore upon acceptance of upgrades and safeguards within 9 months), and board-level oversight with sustained compliance (Rs 10 crore after six months of continued adherence over a 9–15 month period),” the MoCA release said detailing the bank guarantee action against the airline.

December 5 was the day when the disruption peaked with over 1,600 of the airline’s 2,300-plus daily flights getting cancelled, and the DGCA allowed IndiGo a temporary exemption till February 10 from a few night duty-related changes in the new FDTL rules for pilots, which helped the airline swiftly stabilise operations over the course of the next few days. On January 9, IndiGo was ordered to curtail its approved domestic flight schedule by 10%.

The regulator placed its oversight teams at the airline’s headquarters to monitor network and crew operations as the crisis subsided, and summoned the IndiGo top brass on multiple occasions during and after the crisis. The airline’s CEO and COO were also issued show-cause notices by the regulator in view of the operational meltdown. The DGCA also terminated the services of four flight operations inspectors (FOIs) responsible for oversight on IndiGo and the airline’s preparation for the new FDTL rules. An internal inquiry is also being undertaken by the regulator to identify and implement systemic improvements within the DGCA.