IndiGo Faces Rs 22 Cr Fine, Senior VP Dismissal After DGCA Inquiry.
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IndiGo was hit with a Rs 22.2 crore DGCA penalty and a senior executive dismissal following mass flight cancellations; the Delhi High Court seeks compliance affidavits.
Key Takeaways
- •DGCA imposed a Rs 22.2 crore penalty on IndiGo for widespread flight cancellations and regulatory non-compliance.
- •IndiGo's Senior Vice President was directed to step down, and six other senior executives received warnings over operational failures.
- •The airline must furnish a Rs 50 crore bank guarantee to the DGCA to ensure long-term systemic corrections and compliance.
- •The Delhi High Court ordered IndiGo to file an affidavit detailing passenger compensation, including the Rs 10,000 travel vouchers offered.
The Central government has informed the Delhi High Court that strict action was taken against IndiGo following an inquiry. This action stems from the airline’s mass flight cancellations in December 2025. The disruption caused chaos and stranded over three lakh passengers across India. [IndiGo mass flight cancellations] were a major crisis.
Regulatory and Executive Action
The Directorate General of Civil Aviation (DGCA) imposed a significant financial penalty. The airline was fined Rs 22.2 crore for the widespread operational failures. This DGCA penalty on IndiGo is one of the largest in recent history. Furthermore, the DGCA directed the airline to dismiss a Senior Vice President from duty. This executive was held responsible for systemic planning failures. Warnings were also issued to six other senior executives. These included the Chief Operating Officer (COO) and the Deputy Head of Flight Operations.
Corrective Measures and Financial Guarantee
To ensure long-term systemic corrections, the DGCA ordered another measure. IndiGo must furnish a Rs 50 crore bank guarantee. This guarantee is held in favor of the regulator. It ensures the airline complies with all regulatory directions. The DGCA’s inquiry found the crisis was due to several factors. These included "over-optimisation of operations" and inadequate regulatory preparedness. The airline also failed to implement revised Flight Duty Time Limitation (FDTL) norms. The DGCA inquiry found violations on at least six counts.
Court Proceedings and Passenger Compensation
The government’s submissions were made before a division bench of the Delhi High Court. The court is hearing a Public Interest Litigation (PIL) on the matter. The court has directed IndiGo and the Centre to file affidavits within two weeks. These affidavits must detail the steps taken, including passenger compensation.
IndiGo’s counsel informed the court about the compensation process. Refunds for cancelled tickets have already been processed. The airline is now working to pay compensation to all affected passengers. A dedicated website has been launched for passengers to apply for compensation.
- Passengers most severely impacted are being offered Rs 10,000 travel vouchers.
- These vouchers are valid for a period of 12 months.
- The court observed the 12-month period appeared reasonable.
The court has asked the airline to clarify its policy on unutilized vouchers. The next hearing for the Delhi High Court aviation case is scheduled for February 25.
Industry Impact and Financial Fallout
This regulatory action highlights the increased scrutiny on Indian carriers. Operational efficiency must not compromise safety or regulatory compliance. The mass cancellations had a significant financial impact on the airline. IndiGo reported a 75% drop in quarterly profit. The airline took a $63 million hit due to the December disruptions. The DGCA also curtailed IndiGo’s capacity by 10% for the winter schedule. This move further impacts the airline’s operational and financial outlook. The entire episode serves as a strong warning to the aviation sector. It stresses the importance of robust crew management and regulatory adherence.
Trusted commercial aviation news and airline industry reporting are available at flying.flights.
Written by Ujjwal Sukhwani
Aviation News Editor & Industry Analyst delivering clear coverage for a worldwide audience. Covers flight operations, safety regulations, and market trends with expert analysis.
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