DGCA Slaps Rs 22.2 Cr Penalty On IndiGo For Flight Disruptions In December, Warns CEO Elbers

Airlines regulator DGCA on Saturday slapped Rs 22.20-crore penalty on IndiGo and warned its CEO Pieter Elbers and two other senior executives for last month's flight disruptions, which the watchdog blamed on inadequate regulatory preparedness and management structure shortcomings.

Besides, the regulator had directed the airline to furnish a Rs 50-crore bank guarantee to ensure compliance with its directives as well as long-term systemic correction.

In early December, IndiGo cancelled hundreds of flights across the country as the airline was not adequately prepared to implement the new flight duty norms for pilots.

Last month, the airline was provided relaxation till February 10 to comply with the new Flight Duty Time Limitation (FDTL) norms.

In a not-so-common move, the Directorate General of Civil Aviation (DGCA) has imposed a total penalty of Rs 20.40 crore for the non-compliance for the period fo 68 days from December 5, 2025 to February 10, 2026.

The amount translates to Rs 30 lakh fine for each day during the 68-day period.

"In addition to individual enforcement actions, one-time financial penalty (on six counts) is imposed on M/s Indigo Airlines for non-compliance with directions issued under Rule 133A of the Aircraft Rules, 1937," the DGCA said in a statement.

While the regulator imposed a financial penalty of Rs 30 lakh for the airline's "failure to establish and effectively implement a scheme for compliance with limits of Flight Time, Flight Duty Period, Duty Period and Rest Periods; inadequate buffer margins in roster planning", another Rs 30-lakh financial penalty has been slapped for "failure of accountable management to ensure overall functioning, financing, and conduct of operations to DGCA standards, as per the statement.

Similarly, Rs 30-lakh financial penalty has been imposed for "improper delegation and exercise of operational control responsibilities contrary to approved methods" while a financial penalty of Rs 30 lakh has been imposed for "failure of accountable management to ensure overall functioning, financing, and conduct of operations to DGCA standards".

IndiGo Chief Operating Officer Isidre Porqueras is the Accountable Manager at the airline.

According to the statement, IndiGo has been ordered to pledge a bank guarantee of Rs 50 crore in favour of DGCA, to ensure compliance with the directives and long-term systemic correction.

"The bank guarantee-linked reform framework of Rs 50 crore titled the IndiGo Systemic Reform Assurance Scheme (ISRAS) for IndiGo, under which phased release of the bank guarantee is strictly tied to DGCA-verified implementation of reforms," it said.

These reforms will be across four key elements -- leadership and governance (Rs 10 crore upon certification within three months), and manpower planning, rostering and fatigue-risk management (Rs 15 crore linked to initial and sustained compliance over six months), Of the remaining amount, Rs 15 crore will be linked to digital systems and operational resilience upon acceptance of upgrades and safeguards within nine months, and Rs 10 crore related to board-level oversight with sustained compliance after six months of continued adherence over a 9-15 month period.

"Release of the bank guarantee will be contingent upon independent verification and certification by DGCA at each stage," the statement said.

In the unprecedented disruptions from December 3-5, DGCA said 2,507 flights were cancelled and 1,852 flights were delayed impacting over 3 lakh passengers at various airports, The enforcement actions have been taken following a detailed probe by a four-member committee of DGCA officials. The panel had submitted its report to the the regulator late last month.

The penalties are one of the biggest imposed by the regulator so far on any airline for flight disruptions, while other regulatory actions are also unprecedented.

Following the disruptions last month, the DGCA had also curtailed IndiGo's winter schedule flights by 10 per cent.

The committee's findings and recommendations were forwarded to the MoCA. After due deliberations, DGCA issued warning to CEO Pieter Elbers for inadequate overall oversight of flight operations and crisis management, along with issuing warning to the accountable manager (COO) for failure to assess the impact of winter schedule 2025 and the revised FDTL CAR leading to widespread disruptions.

A warning has also been issued to IndiGo Senior Vice President (OCC) with directions to relieve him of current operational responsibilities and not to assign any accountable position, for failure in systemic planning and timely implementation of revised FDTL provisions, DGCA said in the statement.

Additionally, warnings have also been issued to deputy head, flight operations, AVP, crew resource planning, and director, flight operations for operational, supervisory, manpower planning, and roster management lapses, the DGCA added.