IndiGo Refunds Rs 827 Crore After Massive Flight Cancellations: Crisis Management and Regulatory Response

IndiGo's crisis snowballed last Tuesday

New Delhi:

India's largest airline, IndiGo, has refunded tickets worth Rs 827 crore as it contends with an operational crisis leading to widespread flight cancellations and potential regulatory action, officials from the Ministry of Civil Aviation informed NDTV on Monday.

A total of 9,55,591 tickets between November 21 and December 7 were cancelled and refunded, according to ministry officials.

Nearly six lakh tickets valued at Rs 569 crore were cancelled and refunded between December 1 and December 7, they added.

Approximately 4,500 of the 9,000 bags have been returned to customers.

"Target to deliver remaining bags within the next 36 hours," officials stated.

IndiGo, which previously operated about 2,200 daily flights before the crisis escalated last Tuesday, plans to operate 1,802 flights to 137 out of its 138 destinations on Monday.

The airline has announced that the board of its parent company, Interglobe Aviation, has established a Crisis Management Group (CMG), which is conducting regular meetings to monitor the situation.

The CMG was formed during the Board's initial meeting on December 4, the airline revealed in a Monday statement.

The group's priorities include implementing the Board's mandate to restore complete operational integrity, ensure timely information flow, expedite full refunds or rescheduling, and facilitate the return of passenger baggage.

IndiGo cancelled thousands of flights throughout India last week after failing to adequately adjust its roster planning to accommodate new government regulations.

Flight operations were disrupted at numerous airports, including Delhi, Jaipur, Bhopal, Mumbai, Bengaluru, Hyderabad, and Chennai, leaving tens of thousands of travelers stranded.

The airline, facing its most severe crisis to date, has admitted that the flight disruptions occurred primarily due to misjudgment and planning deficiencies in implementing the second phase of the Flight Duty Time Limitations (FDTL) norms.

IndiGo was established in 2006 by Indian entrepreneurs Rakesh Gangwal and Rahul Bhatia. It maintains a fleet exceeding 400 aircraft, predominantly Airbus A320s, and serves approximately 3,80,000 passengers daily to more than 90 domestic and 40 international destinations.

Union Civil Aviation Minister Rammohan Naidu warned on Monday of stringent measures against IndiGo, stating they will "set an example" for other airlines.

Speaking in Parliament, he attributed the chaos to IndiGo's "internal crisis" following the implementation of new passenger safety regulations.

"We care for pilots, crew, and passengers. We made it clear to all airlines. IndiGo was supposed to manage their crew and roster properly. Passengers experienced significant difficulties. We are not taking this situation lightly. We will take strict action. We will set an example for every airline. If there is any non-compliance, we will take action," he declared.

The government, Naidu noted, has initiated a comprehensive investigation into the matter.

He added that Prime Minister Narendra Modi's government seeks to increase competition in the aviation sector, believing that India has the potential to support five major airlines.