On January 17, 2026, the Directorate General of Civil Aviation (DGCA) imposed a record-breaking fine of ₹22.20 crore on IndiGo Airlines. This is the steepest penalty ever levied against an Indian carrier, following a massive operational “meltdown” in December 2025.
The penalty is the result of a month-long inquiry into a crisis that saw 2,507 flights cancelled and 1,852 flights delayed between December 3 and December 5, 2025, leaving over three lakh passengers stranded.
Breakdown of the ₹22.20 Crore Fine
The total penalty consists of two distinct components based on the findings of a four-member DGCA committee:
- ₹1.80 Crore (One-time Penalty): For six specific systemic violations of Civil Aviation Requirements (CARs), including weak operational control and management oversight.
- ₹20.40 Crore (Daily Penalty): A daily fine of ₹30 lakh for continued non-compliance with revised Flight Duty Time Limitation (FDTL) norms over a 68-day period (from December 5, 2025, to February 10, 2026).
Key Findings: Why the Crisis Happened
The DGCA inquiry found that the “meltdown” was not just due to weather, but a series of internal failures:
- Over-Optimization: The airline focused excessively on maximizing the utilization of crew and aircraft, leaving zero roster buffers for recovery during delays.
- FDTL Non-Compliance: IndiGo failed to properly implement new pilot rest rules. At the time of the crisis, the airline was reportedly short of 65 captains needed to comply with the new norms.
- Aggressive Scheduling: The management approved a “Winter Schedule” that was too ambitious for its available manpower, relying heavily on “dead-heading” (moving crew as passengers) and “tail swaps.”
- Software Failures: Deficiencies in the airline’s crew-rostering software prevented it from adapting to disruptions in real-time.
Action Against Senior Leadership
In an unusual move, the DGCA initiated enforcement actions against individual executives:
- CEO Pieter Elbers: Received a “Caution Notice” for inadequate oversight and crisis management.
- COO Isidro Porqueras: Issued a “Warning” for failing to assess the impact of the winter schedule.
- Senior VP (Operations Control Center): Ordered to be removed from his current position and barred from holding any accountable role in the future.
- ₹50 Crore Bank Guarantee: IndiGo must pledge this amount to the DGCA under the IndiGo Systemic Reform Assurance Scheme (ISRAS), to be released only after the regulator verifies long-term reforms.
The “Gesture of Care” for Passengers
To mitigate the fallout, the Ministry of Civil Aviation directed IndiGo to provide additional compensation beyond standard refunds.
- ₹10,000 Voucher: Affected passengers were issued a “Gesture of Care” travel voucher worth ₹10,000, valid for 12 months.
- Full Refunds: The airline confirmed that ₹610 crore in refunds were processed back to the original mode of payment by early December.
