DGCA Slaps ₹22.2-Crore Penalty On Indigo

(MENAFN- Kashmir Observer) Mumbai – Airlines regulator the Directorate General of Civil Aviation (DGCA) has slapped IndiGo with the steepest fine ever for an Indian carrier – Rs 22.2 crore – for its massive flight disruptions last month.

It also directed the airline to furnish a Rs 50-crore bank guarantee to ensure long-term systemic corrections.

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Between December 3 and 5, the DGCA said, 2,507 flights were cancelled and 1,852 flights were delayed, impacting over 3 lakh passengers at airports across the country.

Announcing the enforcement actions after the detailed probe, DGCA cited over-optimisation of operations and inadequate regulatory preparedness, along with deficiencies in system software support, as among the primary reasons for the disruptions.

Shortcomings in management structure and operational control at IndiGo were also blamed.

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

IndiGo, in a statement, said it is“in receipt of the orders of the Directorate General of Civil Aviation of India” on the flight disruptions.

“.. the Board and the Management of IndiGo are committed to taking full cognizance of the orders and will, in a thoughtful and timely manner, take appropriate measures,” the airline said in the statement.

Additionally, it said, an“in-depth review” of the robustness and resilience of the internal processes at IndiGo has been underway since the disruptions to ensure that the airline emerges stronger out of these events”.

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.

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

The DGCA has imposed a total penalty of Rs 20.40 crore for the non-compliance for 68 days from December 5, 2025 to February 10, 2026. The amount translates to Rs 30 lakh fine for each day during the period.

“In addition to individual enforcement actions, a 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.

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