Synopsis: IndiGo’s stock plunged over 6.5% in early trade after the DGCA extended the deadline for CEO Pieter Elbers to respond to a show-cause notice on mass flight cancellations. Operational lapses, regulatory scrutiny, and widespread passenger inconvenience have rattled market sentiment and pushed the stock into a sharp sell-off.
Shares of InterGlobe Aviation, the parent company of IndiGo Airlines, witnessed a steep fall on Monday as ongoing operational disruptions continued to weigh on investor confidence. The stock slipped 6.6% to ?5,015 on the BSE during early trade, marking one of the steepest declines for the airline in recent weeks. By 9:45 a.m., however, the stock recovered slightly and was trading at ?5,159.50, still down 3.93% or ?211 from the previous close.
The sharp sell-off came in the wake of the Directorate General of Civil Aviation (DGCA) extending the deadline for IndiGo CEO Pieter Elbers to respond to a show-cause notice over massive operational disruptions. This notice follows a similar one issued to IndiGo’s accountable manager, signaling intensifying regulatory pressure on India’s largest airline.
Over the past week, IndiGo has faced hundreds of cancellations, leaving passengers stranded across major airports and causing significant public frustration. The DGCA stated that the airline’s “large-scale operation failures” reflected serious shortcomings in planning, oversight, and resource allocation, particularly with regard to the rollout of the revised Flight Duty Time Limitations (FDTL).
The updated FDTL regulations — which dictate duty hours and mandatory rest periods for flight crew — recently came into force, creating widespread operational challenges for the airline. The regulator noted that IndiGo’s inability to prepare for these changes triggered the cascading cancellations.
In its notice, the DGCA gave IndiGo’s accountable manager 24 hours to justify why enforcement action should not be taken. Should the airline fail to submit a satisfactory response within the extended timeframe, the DGCA has indicated it will proceed based on available information.
Despite mounting pressure, IndiGo said on Sunday that it has restored 95% of its network and plans to operate around 1,500 flights. The airline added that operations are expected to fully stabilise by December 10, with improvements seen in on-time performance and declining cancellation rates.
However, more than 220 flights were still cancelled by the time of reporting, compounding the inconvenience faced by passengers nationwide. The volatile mix of regulatory scrutiny, operational challenges, and passenger dissatisfaction continues to impact both the airline’s reputation and its stock performance.
Disclaimer: This article is for informational purposes only and should not be considered investment or legal advice. Readers should verify details independently or consult a professional before making any financial decisions.
