India’s largest airline, IndiGo has estimated a compensation payout exceeding ₹500 crore following widespread flight cancellations that disrupted travel for tens of thousands of passengers last week. The cancellations, which affected around 4,500 flights, were primarily caused by inadequate pilot roster planning amid the implementation of new duty and rest regulations.
According to the airline, the payout will cover customers whose flights were cancelled within 24 hours of departure, as well as passengers who were severely stranded at airports between December 3 and December 5. IndiGo said it is currently identifying the affected flights and passengers to ensure timely compensation.
The disruption prompted India’s civil aviation regulator, the Directorate General of Civil Aviation (DGCA), to direct IndiGo to reduce 10% of its domestic winter schedule. The regulator’s intervention came after complaints mounted over long delays, last-minute cancellations, and insufficient on-ground support for stranded travelers.
IndiGo acknowledged that the operational issues stemmed from a failure to adequately plan for revised pilot rest and duty norms, which came into effect recently. The lack of preparedness led to aircraft being grounded and caused a ripple effect across the airline’s network, particularly during a peak travel period.
In response to the schedule reduction, the low-cost carrier has also revised its financial outlook. Earlier this week, IndiGo lowered its capacity and passenger unit revenue forecast for the third quarter, citing the impact of reduced operations during the winter season.
Despite the setback, IndiGo reiterated its commitment to operational stability and customer service. The airline stated that corrective measures have been implemented to prevent a recurrence, including improved crew planning and tighter operational oversight.
The incident highlights the challenges airlines face in balancing regulatory compliance with operational efficiency, especially in high growth markets like India’s domestic aviation sector.
Follow Startupbydoc for daily startup insights, funding news, IPO analysis, and business breakdowns.