Shares of InterGlobe Aviation, the parent company of IndiGo Airlines, experienced a significant decline in early Monday trading, dropping 6.6% to Rs 5,015 on the BSE. By mid-morning, the stock recovered slightly, trading at Rs 5,159.50, down Rs 211 or 3.93% from prior levels.
The decline was triggered by a show-cause notice issued by the Directorate General of Civil Aviation (DGCA) to IndiGo’s CEO Pieter Elbers. The notice pertains to recent operational disruptions caused by widespread flight cancellations across India.
The DGCA extended the deadline for Elbers to respond, citing the airline’s failure to effectively implement recent Flight Duty Time Limitations (FDTL) rules. These rules, which regulate duty hours and rest periods for flight crews, have recently been enforced, but IndiGo's large-scale operational failures suggest lapses in planning and oversight.
Despite regulatory challenges, IndiGo stated that it has restored 95 percent of its network and plans to operate around 1,500 flights. The airline projects operational stabilization by December 10, although over 220 flights have already been canceled, continuing to cause inconvenience for passengers.
This episode highlights the ongoing challenges in India's aviation sector regarding compliance with safety and operational standards, and the DGCA’s vigilance in enforcing regulation to ensure passenger safety and airline accountability.
