IndiGo flight cancellation crisis: Experts answer key questions

As the crisis enters its critical phase with airfares skyrocketing, understanding the legal entitlements of affected passengers and the regulatory consequences facing becomes important. Legal experts and law practitioners answer the key questions of passengers.

What compensation are passengers entitled to in view of the IndiGo flight cancellations under DGCA guidelines?

B Shravanth Shanker, Advocate-on-Record, Supreme Court of India said that under DGCA’s CAR (Section 3, Series M, Part IV), passengers are entitled to Rs 5,000–10,000 compensation depending on block time if the airline fails to inform them of a cancellation at least two weeks before departure. If informed later, passengers can claim the prescribed compensation plus a full refund. For delays above six hours, they may refuse alternate flight arrangements and opt for a full refund, he said.

Advocate Shanker said that airlines must also provide alternate flights or refunds, and meals/refreshments during long waits. Refunds must be immediate for cash/bank transfer and within seven days for credit card payments.

“Compensation is waived only for extraordinary circumstances (force majeure). However, DGCA has held that IndiGo’s disruptions stem from the airline’s inability to forecast crew availability and significant planning gaps, meaning IndiGo cannot claim force majeure and remains fully liable under compensation rules,” he said further.

How does the Consumer Protection Act, 2019 apply to flight cancellations/delays?

Advocate Tushar Kumar, Supreme Court of India said that the Consumer Protection Act, 2019 fortifies the rights of air travellers by recognising air transport as a “service” and the passenger as a “consumer” entitled to legal safeguards against deficient or unfair conduct.

He said that sudden cancellations, substantial delays, failure to provide timely information, denial of boarding and refusal to extend DGCA-mandated entitlements all amount to deficiency in service and may also constitute unfair trade practices.

“Passengers may therefore seek recourse before the district, state or national consumer commissions, depending on the monetary value of their claim, and may pursue refunds, damages for financial loss, compensation for mental agony, litigation costs and, where warranted, punitive damages. The statutory scheme is designed to ensure accountability and provides a clear, accessible mechanism for enforcement of passenger rights,” Kumar added.

What are the penalties for airlines that fail to comply with consumer protection regulations?

Highlighting that under Indian law, airlines that fail to comply with consumer-protection obligations such as refunds, compensation for cancellations, denial of boarding, or failure to provide mandated facilities under DGCA’s Civil Aviation Requirements (CAR), Abhinay Sharma, managing partner, ASL Partners said that the companies can face penalties under both the Consumer Protection Act, 2019 and the Aircraft Act, 1934.

Further answering the question, advocate Rishabh Gandhi, founder, Rishabh Gandhi and Advocates said that non-compliance can hit an airline from two fronts. Consumer commissions may award compensation, impose costs, or direct immediate corrective measures and the regulator, DGCA, on the other hand, can levy fines, order audits, or restrict operations. When both frameworks converge, the message to the industry is simple- treat passengers fairly, or the law will treat you firmly.

Advocate Sharma, further elaborating on the question said that under the Consumer Protection Act, airlines may be directed by consumer commissions to pay refunds, compensation for deficiency in service, mental agony, litigation costs, and in some cases punitive damages.

“Furthermore, DGCA can take regulatory action under the Aircraft Act and CAR rules, including financial penalties (up to Rs 10 lakh for each violation), issuance of show-cause notices, operational restrictions, and in repeated cases, suspension of routes, slots, or even the Air Operator Certificate (AOC),” he said.

Sharma also pointed out that in recent matters, consumer forums and courts have repeatedly held that arbitrary cancellation, non-refund, or failure to offer alternate travel constitutes deficiency in service, making airlines liable not only to passengers but also to DGCA’s enforcement action.

How does DGCA finalise new norms for flight operations? In this case, did they not consult stakeholders beforehand?

Simplifying the complex answer to the question, advocate Suhael Buttan, Partner, SKV Law Offices said that the DGCA generally follows a standard process where they draft rules, put them up for public comments, and hold meetings with stakeholders, including airlines, airports, and pilot unions. ​However, in this specific case regarding the new pilot fatigue norms, it seems the requisite consultation did happen.

Further answering the question, advocate B Shravanth Shanker said that the crisis originated from the revised ‘Flight Duty Time Limitations’ (FDTL) norms, which were developed after extensive data analysis, fatigue report evaluations, and consultations with airlines, pilot groups, and individuals, and were aligned with global FAA and EASA standards.

He explained the timeline as it unfolded- the norms were announced in January 2024 with a compliance deadline of June 1, 2024 after which airlines had sought a one-year deferral citing a 15–20% capacity impact and the need for 20–25% more pilots.

On March 22, 2024, the civil aviation ministry directed DGCA to defer implementation, leading to a phased rollout beginning with Phase 1 in July 2024 and Phase 2 on November 1, 2024.

“Despite the extended notice period, IndiGo imposed a hiring freeze that significantly contributed to the current disruption. While pilot unions alleged selective implementation and inadequate consultation, DGCA records reflect that due consultation was undertaken and that IndiGo was repeatedly advised to restructure rosters and strengthen manpower—steps it ultimately failed to take,” said advocate Shanker.

What punitive action can DGCA take against IndiGo airlines?

Advocate Rishabh Gandhi, said that the DGCA’s toolkit ranges from polite enquiries to painful penalties to deal with situations like the current one. The regulatory body can seek explanations, impose fines, mandate revised schedules, require compliance audits, or tighten oversight and in extreme scenarios, operational approvals can be curtailed—though regulators usually reserve that nuclear option for safety breaches, not scheduling miscalculations. Still, if disruptions continue, the regulator’s patience may run out before passengers’ irritation does, he said.

Advocate B Shravanth Shanker said that the DGCA may also intensify monitoring, having conducted 5,745 surveillance activities in 2023 – a 26% increase.

“IndiGo has previously faced DGCA penalties, including for the wrongful offloading of a differently-abled passenger, and with 1,200 cancellations in a single week during the present crisis, unprecedented sanctions are likely once the inquiry concludes. IndiGo’s market dominance will not shield it from accountability, and DGCA’s current posture signals significant consequences ahead,” he said.

He also pointed out that DGCA’s available actions range from enhanced surveillance to financial penalties and operational curbs, and an inquiry committee has already been constituted, with the regulator even temporarily relaxing an FDTL rule (weekly rest substitution) to stabilize operations.

Potential consequences include fines ranging from Rs 10 lakh to Rs 90 lakh or more depending on violations, penalties such as license suspension or withdrawal of operator permissions for severe or repeated breaches, personnel measures including removal of responsible executives and mandatory disciplinary action, and operational restrictions such as grounding aircraft, imposing route limits, or placing capacity caps, said advocate Shanker.