India plans strict action against IndiGo after the airline cancelled over 2,000 flights this month. The civil aviation minister said authorities will “set an example” for other airlines violating regulations. The cancellations stranded tens of thousands of passengers and disrupted travel plans across the country.
The crisis stems from IndiGo failing to comply with stricter pilot rest rules, leading to crew shortages. The airline dominates 65% of India’s aviation market, raising concerns about overreliance on a single carrier. Passengers faced delays, lost luggage, and disrupted vacations, prompting public outrage.
Read more: IndiGo chaos: 1200 flights cancelled, passengers stranded
The government has issued notices to IndiGo’s CEO and COO warning of penalties or suspensions. Between December 1 and 7, over 586,000 tickets were cancelled, with refunds exceeding 569 crore rupees ($63 million). The inquiry aims to prevent future disruptions and ensure compliance across airlines.
IndiGo’s stock plummeted nearly 17% in the past week, wiping $4.3 billion off market value. Analysts warn of a potential 8-9% earnings hit if the disruption continues for 15 days. Competitors, like SpiceJet, gained from the chaos, with shares rising nearly 14%.
Read more: India’s flights grounded as pilot shortage hits hard
Despite the financial and reputational damage, IndiGo continues flight operations, with around 500 flights cancelled on Monday alone. Authorities stress that robust enforcement is necessary to protect passengers and maintain stability in India’s aviation sector.