Indian regulators have sanctioned low-cost operator IndiGo following its high-profile operational meltdown in December, imposing a Rs222 million ($2.45 million) fine and putting its senior leadership on notice.
The imposition of the fine comes as an inquiry committee – formed at the direction of the Indian civil aviation ministry – releases its findings on the operational disruptions.
In its report, the four-member committee lists several factors that led to the disruption: an “over-optimisation” of flight operations, “inadequate regulatory preparedness” as well as “deficiencies” in its system software support.
It found that the airline had an “overriding focus” on maximising the utilisation of its crew, aircraft and network resources, a move which “significantly reduced” rostering buffer.
“Crew rosters were designed to maximise duty periods, with increased reliance on dead-heading, tail swaps, extended duty patterns, and minimal recovery margins. This approach compromised roster integrity and adversely impacted operational resilience,” the committee states.
It also called out management “lapses” at the carrier, noting a failure to “adequately identify planning deficiencies” and maintain “sufficient operational buffer”.
“The findings underscore the need for balanced operational planning, robust regulatory preparedness, and effective management oversight to ensure sustainable operations and passenger safety and convenience,” the committee notes.
IndiGo suffered the operational meltdown between 3 and 5 December, delaying and cancelling thousands of flights across its network. On 5 December cancellations peaked at over 1,000 flights – more than half its daily schedules.
The Directorate General of Civl Aviation (DGCA) has censured IndiGo management, issuing warnings to key personnel like airline chief Pieter Elbers, COO Isidre Porqueras, as well as IndiGo’s operations control centre head Jason Herter.
On top of the Rs222 million fine to be paid, IndiGo has also been ordered to pledge a Rs500 million bank guarantee to ensure compliance to its directives and “long-term systemic correction”.
To this end, IndiGo’s board and management have said they are “committed to taking full cognisance of the orders” from the regulators.
“Additionally, an in-depth review of the robustness and resilience of the internal processes of IndiGo has been underway since the disruption to ensure that the airline emerges stronger out of these events in its otherwise pristine record of 19+ years of operations,” IndiGo adds.
The operational meltdown – as well as the consequent regulatory penalties – will likely be an area of focus when IndiGo releases its financial results on 22 January.
