IndiGo Crisis: Rs 827 Crore in Refunds Processed as Airline Battles Massive Flight Disruptions

New Delhi:

IndiGo airline, which is gradually recovering from severe operational disruptions last week, announced Monday evening that refunds for flights cancelled between December 3 and 15 are currently being processed.

The budget carrier, which dominates 60% of India's aviation market, posted on X that they are offering "a full waiver on change and cancellation requests" and directed affected passengers to their dedicated refund claim webpage.

"We are deeply sorry for the disruption to your journey," IndiGo stated. "Please be assured our teams on the ground and behind the scenes are working tirelessly to support all affected customers and restore normal operations as quickly as possible."

Notably, the airline has moved up the starting date for refund eligibility by 48 hours, highlighting the magnitude of the crisis they are facing.

Previously on Saturday, IndiGo had apologized for "hardships caused" and promised: "No questions asked... We will offer full waiver on all cancellations and reschedule requests for bookings between December 5 and December 15."

The Civil Aviation Ministry revealed today that IndiGo has already refunded over 950,000 tickets worth approximately Rs 827 crore, sold between November 21 and December 7. Nearly 600,000 of these refunds, valued at Rs 569 crore, were for flights during the peak crisis period from December 1 to 7.

The ministry has instructed the airline to clear all pending refunds without delay and not to impose rescheduling charges for passengers affected by flight cancellations.

Aviation Minister Rammonan Naidu has warned of strict action to "set an example" as the ministry keeps IndiGo under intense scrutiny since the crisis began last Monday.

The root cause of this chaos stems from new flight safety regulations announced by the government nearly two years ago. These rules aim to address pilot fatigue, a significant factor in aircraft accidents, by increasing mandatory rest periods. Implementation required airlines to recruit additional pilots.

IndiGo, which operates 2,200 daily flights and has traditionally focused on minimizing downtime, experienced a crew shortage when the new regulations took effect, resulting in hundreds of cancellations and significant passenger inconvenience.

As the situation deteriorated, the Directorate General of Civil Aviation temporarily relaxed these new regulations to mitigate the crisis.

The IndiGo disruption has also prompted opposition parties to highlight concerns about the duopolistic nature of India's aviation sector, with IndiGo and Air India controlling the majority of market share. The government has responded by stating that it has consistently encouraged new entrants into the sector.