India's aviation watchdog has imposed a record financial penalty on the country's largest airline, IndiGo, following a major operational collapse last month that saw thousands of flights cancelled and passengers stranded across the nation.
Record Penalty and Executive Sanctions
The Directorate General of Civil Aviation (DGCA) has levied a fine of $2.45 million, equivalent to approximately £1.8 million, on the carrier. This marks the largest fine ever issued by the regulator. Alongside the financial penalty, the DGCA has issued formal warnings to several senior executives and mandated the removal of the airline's head of operations control, Jason Herter, from his operational duties.
Chief Operating Officer Isidre Porqueras was also warned, while CEO Pieter Elbers received a formal "caution" from the regulator for what it described as "inadequate overall oversight of flight operations and crisis management." IndiGo has been ordered to provide a bank guarantee of $5.51 million to the DGCA to ensure future compliance with directives.
Root Cause: Pilot Roster Failures
The decisive action comes after IndiGo cancelled around 4,500 flights during the first weeks of December 2025, disrupting the travel plans of tens of thousands of passengers. The airline has since admitted that poor pilot roster planning was the primary cause of the chaos.
A DGCA investigation found that IndiGo, which commands a 65% share of India's domestic market, failed to identify critical planning gaps or maintain sufficient operational buffers. The regulator stated the airline had an "overriding focus" on maximising the use of crew, aircraft, and network, which compromised roster integrity and damaged operational resilience, especially after stricter pilot rest rules were introduced last year.
Broader Market and Regulatory Repercussions
The crisis has highlighted concerns about limited competition in one of the world's fastest-growing aviation markets. In a controversial move to help stabilise IndiGo's operations, the government temporarily relaxed some rules on night duties for pilots, a decision criticised by pilot unions and safety advocates.
The financial penalty, while a record, represents just 0.31% of IndiGo's annual profit for the 2024/25 fiscal year. In response to the incident, the aviation ministry has also ordered an internal inquiry into the DGCA's own functioning. Separately, India's competition regulator is reviewing allegations of antitrust violations against the two-decade-old airline.
IndiGo stated that its board and management are "committed to taking full cognisance of the orders and will, in a thoughtful and timely manner, take appropriate measures."
