DGCA Imposes ₹22.2 Crore Penalty on IndiGo Over December Flight Disruptions

India’s civil aviation regulator has imposed a financial penalty of ₹22.20 crore on IndiGo Airlines following a detailed investigation into widespread flight disruptions that affected lakhs of passengers in December 2025. Along with the monetary fine, the regulator has also initiated strict enforcement action against senior members of the airline’s management, citing serious operational and planning lapses.

The disruptions occurred over a three-day period from December 3 to December 5, 2025, when IndiGo cancelled more than 2,500 flights while nearly 1,900 others were delayed. The situation led to severe congestion at airports across the country, leaving over three lakh passengers stranded during the peak winter travel season.

Findings of the Inquiry

The action follows the findings of a four-member inquiry committee constituted by the Directorate General of Civil Aviation (DGCA) under the directions of the Ministry of Civil Aviation. The committee concluded that the disruptions were not caused by external factors alone but were largely the result of internal shortcomings.

According to the inquiry, IndiGo’s operational model during the period was marked by excessive optimisation, leaving little margin for recovery when schedules were disrupted. The airline was found to have inadequate preparedness for regulatory changes, particularly revised Flight Duty Time Limitation (FDTL) norms, which are meant to prevent crew fatigue and enhance safety.

The panel also pointed to weaknesses in digital systems and shortcomings in management oversight. Crew rosters were reportedly designed to maximise utilisation, with heavy reliance on practices such as dead-heading, tail swaps, and extended duty hours. This approach reduced operational resilience and made it difficult for the airline to manage disruptions once delays began to cascade.

Action Against Senior Management

Based on these findings, the DGCA issued formal cautions and warnings to several senior officials. The airline’s chief executive officer was cautioned for inadequate overall oversight and crisis management during the disruption period. The accountable manager, who also serves as the chief operating officer, received a warning for failing to adequately assess the impact of the winter schedule and the revised FDTL norms.

The regulator also directed that the senior vice president in charge of the operations control centre be relieved of current operational responsibilities and not be assigned any accountable role for the time being. Warnings were issued to other senior officials involved in flight operations, crew planning, and rostering for lapses in supervision and workforce management.

IndiGo has been instructed to take appropriate action against other personnel identified during its internal review and to submit a detailed compliance report to the DGCA within the stipulated timeframe.

Break-up of the Penalty

The total penalty of ₹22.20 crore includes ₹1.80 crore imposed as one-time fines for six separate violations of Civil Aviation Requirements. These violations relate to non-compliance with FDTL norms, improper operational control, and insufficient management oversight.

In addition, a fine of ₹20.40 crore was levied for continued non-compliance with revised FDTL provisions over a period of 68 days, from December 5, 2025, to February 10, 2026. This was calculated at ₹30 lakh per day, reflecting the regulator’s strict stance on sustained regulatory breaches.

Mandatory Systemic Reforms

Beyond financial penalties, the DGCA has ordered IndiGo to furnish a bank guarantee of ₹50 crore under a newly instituted framework aimed at ensuring long-term systemic reforms. The release of this guarantee will be phased and linked to verified improvements across four key areas: leadership and governance, workforce planning and fatigue-risk management, digital systems and operational resilience, and board-level oversight.

Each phase of reform will be independently assessed by the regulator before any portion of the guarantee is released, underscoring the emphasis on sustained compliance rather than short-term corrective measures.

Passenger Relief Measures

The regulator acknowledged that IndiGo managed to stabilise operations relatively quickly after the disruptions. In addition to processing refunds and providing compensation as per existing rules, the airline issued a one-time travel voucher worth ₹10,000 to passengers whose flights were cancelled or delayed by more than three hours during the affected period. The voucher is valid for 12 months.

Regulator’s Broader Message

The DGCA reiterated that safety, crew welfare, and passenger interest remain central to its regulatory mandate. It stated that the enforcement action is intended not only to address the specific lapses at IndiGo but also to send a wider message across the aviation sector about the importance of robust planning, regulatory compliance, and operational resilience.

Separately, the Ministry of Civil Aviation has directed an internal review within the DGCA to identify areas where the regulator itself can strengthen oversight mechanisms, particularly during periods of high traffic and schedule changes.

The episode marks one of the most significant enforcement actions taken against an Indian airline in recent years and is expected to prompt broader discussions within the industry on balancing efficiency with resilience in an increasingly complex operating environment.