IndiGo Faces Ongoing Crisis with Over 800 Flights Cancelled and Government Mandates Refunds

IndiGo cancelled over 800 flights on Saturday amid an ongoing crisis. The government has capped airfares and instructed the airline to process all refunds by Sunday evening. IndiGo's on-time performance from six major airports dropped to 3.7% on Friday, according to the civil aviation ministry's website. Regulatory action will be taken if the airline fails to comply with these directives.

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IndiGo has been directed to refund tickets for cancelled flights by Sunday evening and ensure separated baggage is returned within two days. The airline had already cancelled over 1,000 flights on Friday. IndiGo stated its teams are working to stabilise schedules, reduce delays, and support customers during this period. They are prioritising customer refund issues.

Airfare Caps and Refunds

The civil aviation ministry has imposed fare caps due to flight disruptions leading to capacity constraints and fare surges. For flights up to 500 kilometres, fares are capped at Rs 7,500; for 500-1,000 kilometres, Rs 12,000; for 1,000-1,500 kilometres, Rs 15,000; and above 1,500 kilometres, Rs 18,000. These limits exclude charges like User Development Fee and taxes.

IndiGo must set up dedicated passenger support and refund facilitation cells. These cells will proactively contact affected passengers to ensure refunds and alternative travel arrangements are processed without multiple follow-ups. Automatic refunds will continue until operations stabilise completely.

Industry Reactions

The Indian Association of Tour Operators President Ravi Gosain noted that unpredictable fare spikes harm consumer confidence and create chaos for tour operators. He suggested that a temporary fare cap might offer immediate relief but stressed the need for better contingency planning and transparent fare monitoring.

Anil Kalsi from the Federation of Associations in Indian Tourism & Hospitality stated that fare caps are essential to protect flyer rights in India. He emphasised the need for a permanent policy regarding fare regulation.

Operational Adjustments

The Directorate General of Civil Aviation (DGCA) provided temporary relief to IndiGo by adjusting night duty definitions and allowing more night landings for pilots. However, the Airlines Pilots Association (ALPA) India criticised these relaxations as unsafe and contrary to court directions on fatigue-mitigation standards.

ALPA India expressed concern that these steps compromise safety standards and urged the Civil Aviation Ministry and DGCA to prioritise safety over commercial interests. "We urge the Civil Aviation Ministry and the regulator to uphold the Courts order in both letter and spirit," ALPA India stated.

IndiGo's Response

IndiGo CEO Pieter Elbers apologised in a video message for the inconvenience caused by flight disruptions. He mentioned that fewer than 1,000 flights were expected on Saturday. IndiGo was initially against new flight duty time limitations introduced in January 2024 due to additional crew requirements.

The latest FDTL norms include increased weekly rest periods of 48 hours, extended night hours, and limiting night landings to two from six previously. These norms were also opposed by other domestic airlines like Air India initially.

The situation remains fluid as IndiGo continues efforts to stabilise operations while complying with government directives. The airline is working closely with airports and partners to provide timely updates through various channels.

With inputs from PTI