India’s aviation regulator, the Directorate General of Civil Aviation (DGCA), has imposed a record fine of USD 2.45 million on IndiGo, the airline led by former KLM chief executive Pieter Elbers.
Senior executives were also issued formal warnings, including CEO Elbers himself. According to news agency Reuters, the regulator reprimanded him for “inadequate overall oversight of flight operations and crisis management”. IndiGo was furthermore instructed to remove the head of operational control from his position following the mass flight cancellations last month.
India’s largest airline cancelled around 4,500 flights in the first weeks of December, leaving tens of thousands of passengers stranded across the country. The incident has highlighted concerns about limited competition in the world’s fastest-growing aviation market.
The disruption was triggered by new, more generous regulations on mandatory pilot rest periods. Pilots are now required to take at least 48 hours of rest per week, up from 36 hours previously. In addition, they are allowed to carry out only two night landings per week, compared with six under the previous rules.
The airline struggled to adjust its flight schedule in time to comply with the new regulations. India’s Ministry of Civil Aviation had already stated in December that the cancellations at IndiGo were the result of miscalculations and gaps in planning.
IndiGo has acknowledged that inadequate planning of pilot rosters was the main cause of the disruption. An investigation by the DGCA uncovered multiple shortcomings at the airline after stricter rules on pilot duty and rest times came into force last year, the regulator said in a statement. According to the DGCA, the airline, which controls around 65 per cent of India’s domestic market, failed to identify planning gaps at an early stage or to maintain sufficient operational staffing buffers. The regulator added that IndiGo focused primarily on maximising the utilisation of crew, aircraft and network resources.
A government source told Reuters that the fine is the highest ever imposed by the authority, although it represents just 0.31 per cent of IndiGo’s annual profit for the 2024/25 financial year.
In a statement, IndiGo said its board of directors and management would “fully take into account the orders and take appropriate measures in a considered and timely manner”.
CEO Elbers received a warning for “inadequate overall oversight of flight operations and crisis management”, the regulator confirmed. Sources indicated that this warning does not jeopardise his position and that he is expected to remain in office.
IndiGo was also ordered to provide a bank guarantee of USD 5.51 million to the DGCA to ensure “compliance with the guidelines and long-term system correction”. (Picture Unsplash).
