IndiGo Shares Plummet 6.5% Following DGCA Show-Cause Notice Over Flight Disruptions

The aviation regulatory body issued a show-cause notice to IndiGo's accountable manager amid operational challenges.

Mumbai:

InterGlobe Aviation shares, the parent company of IndiGo Airlines, experienced a significant decline in early trading on Monday, plummeting 6.6 percent to reach an intra-day low of Rs 5,015 on the BSE.

The shares showed partial recovery later in the session, trading at Rs 5,159.50 around 9:45 am, representing a decrease of Rs 211 or 3.93 percent from previous levels.

This market reaction followed the Directorate General of Civil Aviation (DGCA) extending the deadline for IndiGo CEO Pieter Elbers to respond to a show-cause notice related to the airline's recent operational disruptions.

On Sunday, the aviation regulator issued a show-cause notice to IndiGo's accountable manager, just one day after sending a similar notice to CEO Pieter Elbers. The DGCA stated that the airline's extensive cancellations over the past week had caused widespread inconvenience and distress to passengers throughout the country.

According to the regulatory body, the disruptions primarily resulted from IndiGo's inadequate planning for implementing the revised Flight Duty Time Limitations (FDTL) regulations.

These regulations, which specify duty hours and mandatory rest periods for flight crew members, were recently implemented and have created substantial operational challenges for the airline.

In its notice, the DGCA highlighted that IndiGo's "large-scale operation failures" indicate significant deficiencies in planning, oversight, and resource management processes.

The accountable manager has been given 24 hours to explain why enforcement action should not be initiated. The DGCA has indicated that if the airline fails to respond within the extended deadline, it will proceed based on available information.

Despite mounting regulatory pressure, IndiGo announced on Sunday that it has restored 95 percent of its network and intends to operate approximately 1,500 flights.

The airline stated that its operations are expected to stabilize by December 10, with improvements in on-time performance and fewer flight cancellations.

However, at the time of reporting, over 220 flights had already been cancelled across major airports, further exacerbating the inconvenience experienced by thousands of passengers.