IndiGo
Market panics! IndiGo shares plunge 7% amid unprecedented airline meltdown
Mumbai/IBNS: Shares of InterGlobe Aviation Ltd., the parent company of IndiGo, fell nearly 7 percent on Monday as the airline continued to grapple with a week-long operational crisis that has led to massive flight cancellations and delays, according to media reports.
The stock declined after Delhi airport authorities warned that IndiGo flights may continue to face delays, signalling that the disruption is far from over.
More than 450 IndiGo flights were cancelled on Monday as the airline attempted to stabilise its operations. The cancellations were widespread across major airports, with Delhi reporting 134 cancellations, Bengaluru 127, Hyderabad 77, Chennai 71, and Jammu 20, India Today reported. Mumbai, Kolkata and Ahmedabad also witnessed significant disruption.
While Monday’s cancellations remain high, they are lower than the 650 flights cancelled on Sunday and the over 1,000 cancellations reported earlier in the week.
FDTL rule rollout triggers operational meltdown
IndiGo admitted that it was unable to adequately prepare for the rollout of the revised Flight Duty Time Limitation (FDTL) norms for pilots, which came into effect on November 1.
The updated regulations impose stricter limits on night flying hours and mandatory weekly rest, requiring airlines to redesign crew rosters. IndiGo’s failure to realign its schedules in time caused a cascading operational breakdown, resulting in crew shortages, large-scale delays and hundreds of cancellations across its network.
DGCA issues show-cause notice to IndiGo CEO
In an unusually stern move, the Directorate General of Civil Aviation (DGCA) issued a show-cause notice to IndiGo CEO Pieter Elbers, holding him responsible for what it called an “operational collapse”.
The regulator said passengers experienced “severe inconvenience, hardship and distress” nationwide and accused the airline of failing to prepare for the new FDTL regime despite months of advance notice.
According to the notice, IndiGo violated several Civil Aviation Requirements (CARs), failed to comply with Rule 42A of the Aircraft Rules, 1937, and did not provide mandated support to stranded passengers.
Elbers has 24 hours to respond, after which the DGCA may decide the matter ex parte, potentially resulting in financial penalties or operational restrictions.
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