MoCA Sets Strict Condition for IndiGo Slot Allocation: Must Add New Aircraft

The Ministry of Civil Aviation (MoCA) has issued a significant directive to Indian carriers.

It states that new flight allocation of slots vacated by IndiGo will favor airlines that demonstrate genuine capacity additions. This means preference will go to carriers adding additional aircraft and crew. The policy specifically aims to prevent simple reshuffling of existing services. This move underscores the regulator’s focus on stability in the Indian aviation market.

Background: The IndiGo Capacity Cut

The need for IndiGo vacated slots arose from severe operational disruptions. In December, IndiGo cancelled 4,290 flights between December 1 and 9. This chaos affected over 300,000 passengers nationwide. The disruptions were primarily linked to a pilot shortage. This shortage followed the implementation of new Flight Duty Time Limitation (FDTL) rules. These rules introduced more humane working hours for flight crew.

In response, the Directorate General of Civil Aviation (DGCA) intervened. The DGCA ordered the airline to cut 10% of its domestic flights. This reduction was mandated for the entire winter season. The winter schedule runs until late March. This regulatory action led to the surrender of numerous operating slots. IndiGo is the country’s largest carrier by market share. The operational meltdown caused a 78% decline in its Q3 profit. The financial impact due to the disruptions was reported at ₹577 crore.

MoCA's New Allocation Criteria

To manage the redistribution, the MoCA constituted a slot coordination committee. The committee held its first meeting on January 13. The ministry outlined clear conditions for other airlines to apply for the slots.

Key Conditions for Slot Preference:

• Preference is for airlines demonstrating fresh capacity.
• This capacity must include additional aircraft and crew.
• Airlines must show readiness with pilots, cabin crew, and ground support.
• The slots cannot be used by discontinuing existing routes or sector connectivity.
• Airlines must share details of their operational preparedness.

Failure to meet these conditions risks the cancellation and reassignment of the slots. The goal is to ensure surrendered slots do not remain unutilized.

Industry Impact and Capacity Expansion

This new policy is a strong signal from the MoCA. It prioritizes the stability and growth of the Indian aviation market. The directive ensures that the available slots contribute to overall MoCA flight expansion. It prevents carriers from simply shifting resources to gain prime slots. Instead, it demands an increase in airline operational capacity.

Smaller and new entrant airlines now have a clear path to expansion. They must prove their infrastructure and human resources are ready. This requirement is a direct response to the operational issues faced by IndiGo. The DGCA is closely monitoring the entire slot allocation process. The final allocation decision rests with the coordination committee. The process aims to be fair, transparent, and equitable. This approach ensures minimal disruption to passengers.

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