Government Intervention Amid IndiGo Flight Cancellations
IndiGo is grappling with significant flight disruptions for the fifth consecutive day, prompting intervention from the Prime Minister’s Office (PMO) on Saturday. Reports indicate that Prime Minister Narendra Modi was briefed on the crisis affecting India’s largest airline, which has seen over a thousand flights canceled in recent days. The PMO is in direct communication with IndiGo’s CEO, Peter Elbers. Additionally, the Ministry of Civil Aviation summoned senior IndiGo officials for a meeting, highlighting the seriousness of the situation.
While there were signs of operational stability on Saturday, the government intensified pressure on IndiGo, mandating that the airline process refunds for passengers by 8 PM on Sunday. Furthermore, it imposed restrictions on rising airfares, setting limits on ticket prices.
IndiGo’s Flight Cancellations and Government Measures
Approximately 500 IndiGo flights were cancelled, leading to reduced chaos at airports. To alleviate passenger difficulties, Indian Railways has introduced additional and special trains.
Sources reveal that the PMO is maintaining direct contact with CEO Peter Elbers, who has requested a 10-day period to stabilize operations. He has also appealed to the government for leniency regarding the stringent FDTL regulations.
However, the government has made it clear to Elbers that restoring normalcy at airports must be prioritized. IndiGo may face penalties for regulatory non-compliance, consumer impact, operational failures, and violations of public interest.
Impact on Airfares and Refund Policies
The ongoing crisis has also affected airfares, with prices quadrupling on certain routes. In response, the government has established fare caps for domestic economy class tickets. For distances up to 500 kilometers, the fare is set at ₹7,500; for 500-1,000 kilometers, it is ₹12,000; for 1,000-1,500 kilometres, ₹15,000; and for distances exceeding 1,500 kilometres, ₹18,000.
Furthermore, the Ministry of Civil Aviation has instructed IndiGo to complete the refund process for all canceled flights by 8 PM on Sunday, December 7, and has mandated that no rescheduling fees be charged.
