IndiGo flight disruptions: DGCA slaps ₹22.20 cr penalty, orders sweeping reforms after December chaos

India’s aviation regulator has imposed stringent penalties and mandated long-term reforms on IndiGo following a massive operational breakdown in December 2025 that stranded more than three lakh passengers across the country. 

In its findings released this week, the Directorate General of Civil Aviation (DGCA) concluded that the large-scale cancellations and delays between December 3 and 5 were not caused by external shocks alone, but by systemic failures within the airline’s planning, management oversight, and operational control. 

Findings: Over-optimisation & thin buffers 

A four-member inquiry committee constituted by DGCA on the directions of the Ministry of Civil Aviation (MoCA) found that IndiGo cancelled 2,507 flights and delayed 1,852 others over the three-day period, triggering one of the most disruptive episodes in Indian civil aviation in recent years. 

The committee identified over-optimisation of operations, inadequate regulatory preparedness, deficiencies in system software support, and shortcomings in management structure as the primary causes of the crisis. According to the report, the airline failed to maintain adequate operational buffers while transitioning to the revised Flight Duty Time Limitation (FDTL) norms. 

Crew rosters were designed to maximise duty periods, with increased reliance on dead-heading, tail swaps, extended duty patterns and minimal recovery margins. This approach significantly weakened roster integrity and reduced the airline’s ability to recover when disruptions began to cascade. 

The inquiry also flagged a failure by senior management to anticipate the operational impact of the Winter Schedule 2025 and to implement revised FDTL provisions in a timely and effective manner. 

Enforcement action against senior leadership 

Acting on the committee’s recommendations, DGCA initiated enforcement action against key officials of InterGlobe Aviation. 

The regulator issued a caution to the Chief Executive Officer for inadequate overall oversight of flight operations and crisis management. The Accountable Manager and Chief Operating Officer received a warning for failing to assess the impact of the winter schedule and revised duty time regulations. 

More sharply, the Senior Vice President of the Operations Control Centre (OCC) was warned and directed to be relieved of current operational responsibilities, with instructions that he not be assigned any accountable position, citing failures in systemic planning and delayed compliance. 

Warnings were also issued to the Deputy Head-Flight Operations, AVP-Crew Resource Planning and Director–Flight Operations for lapses in manpower planning, supervision and roster management. IndiGo has been directed to take action against any additional personnel identified through its internal review and submit a compliance report to DGCA. 

₹22.20 crore penalty & ₹50 crore reform guarantee 

DGCA imposed a one-time penalty of ₹1.80 crore on IndiGo for multiple violations of Civil Aviation Requirements (CARs), including failures related to crew duty limits, operational control and accountable management responsibilities. 

In addition, the airline was fined ₹20.40 crore for continued non-compliance with revised FDTL provisions over a 68-day period from December 5, 2025 to February 10, 2026. The total penalty imposed stands at ₹22.20 crore. 

In a significant regulatory step, DGCA has also ordered IndiGo to pledge a ₹50 crore bank guarantee under the IndiGo Systemic Reform Assurance Scheme (ISRAS). The guarantee will be released in phases only after DGCA-certified implementation of reforms across four pillars: leadership and governance, manpower planning and fatigue-risk management, digital systems and operational resilience, and board-level oversight with sustained compliance. 

Passenger relief & regulatory introspection 

The regulator acknowledged that IndiGo restored operations to normal levels in a relatively short time. In addition to statutory refunds and compensation, the airline issued a ₹10,000 “Gesture of Care” voucher to passengers whose flights were cancelled or delayed beyond three hours during the disruption window, on the directions of MoCA. 

Separately, MoCA has also ordered an internal inquiry to identify systemic improvements within DGCA itself, reflecting broader concerns about regulatory preparedness in a rapidly expanding aviation market. 

IndiGo’s response 

Responding to the DGCA orders, the Chairman and Members of the Board of Directors of InterGlobe Aviation said they had received the regulator’s directions and were committed to acting on them in a “thoughtful and timely manner”. 

In a statement issued on January 17, 2026, the board said that an in-depth review of the robustness and resilience of IndiGo’s internal processes had been underway since the December disruption, with the objective of ensuring the airline emerges stronger from the episode. 

The company reiterated its commitment to customers and stakeholders, stating that IndiGo remains focused on serving India’s growing aviation needs and playing a role in positioning the country as a global aviation hub by 2030. 

DGCA stressed that safety and regulatory compliance remain paramount, and that the enforcement actions are intended to strengthen systemic resilience across the aviation ecosystem while safeguarding the interests and well-being of pilots, crew and passengers.