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Shares of IndiGo climbed as much as 3.8% on January 19 with investors shrugging off a record Rs 22-crore fine imposed by aviation regulator DGCA
IndiGo Shares
Shares of IndiGo climbed as much as 3.8 per cent on January 19, with investors shrugging off a record Rs 22-crore fine imposed by aviation regulator DGCA — a penalty Jefferies termed “relatively modest” following last month’s large-scale flight disruptions.
The Directorate General of Civil Aviation also asked the airline to furnish a Rs 50-crore bank guarantee to ensure long-term systemic corrections.
Between December 3 and 5, IndiGo cancelled 2,507 flights and delayed 1,852 others, affecting over three lakh passengers nationwide. At 12:20 pm, the stock was trading 3.5 per cent higher at Rs 4,907, emerging as the top gainer on the Nifty even as benchmarks remained under pressure.
DGCA attributed the disruptions to shortcomings in management structure and operational control. The penalties are among the largest ever imposed on an airline for service failures, with regulatory actions described as unprecedented.
In early December, IndiGo had cancelled hundreds of flights after being unprepared to implement revised pilot duty norms. The airline was later granted relaxation until February 10 to comply with the new Flight Duty Time Limitation (FDTL) rules. Its shares had slumped 14.2 per cent that month — the sharpest fall since October 2024.
“Fines do look modest, likely because of regulatory caps,” Jefferies said, adding that focus will now shift to DGCA’s guidance on schedule normalisation once compliance milestones and systemic reforms are independently validated.
DGCA imposed a total penalty of Rs 20.40 crore for 68 days of non-compliance between December 5, 2025 and February 10, 2026, translating to Rs 30 lakh per day. It also levied multiple Rs 30-lakh penalties on six counts for violations of Rule 133A of the Aircraft Rules, 1937.
The fine amounts to about 0.31 per cent of IndiGo’s FY25 annual profit.
The regulator further issued warnings to senior executives and ordered the removal of the head of operations control from his duties. A DGCA probe found deficiencies after stricter pilot rest and duty rules came into effect.
Penalties were imposed for failure to implement effective compliance systems for flight time and duty limits, inadequate roster planning, weak operational control, and lapses in management oversight. IndiGo COO Isidre Porqueras is the airline’s accountable manager.
IndiGo has also been directed to pledge a Rs 50-crore bank guarantee under the IndiGo Systemic Reform Assurance Scheme (ISRAS), with phased release linked to DGCA-verified reforms. These cover leadership and governance (Rs 10 crore), manpower planning and fatigue-risk management (Rs 15 crore), digital systems and operational resilience (Rs 15 crore), and board-level oversight (Rs 10 crore). Release of funds will depend on independent certification by the regulator.
The enforcement action followed a probe by a four-member DGCA committee, whose findings were forwarded to the Ministry of Civil Aviation. DGCA has since cut IndiGo’s winter schedule flights by 10 per cent.
Warnings were issued to CEO Pieter Elbers for inadequate oversight and crisis management, to the COO for failure to assess the impact of the revised FDTL rules, and to several senior operational executives for planning, manpower and roster management lapses.
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January 19, 2026, 13:46 IST
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