Tue Dec 09 00:40:00 UTC 2025: Indigo Shares Plunge Amid Mass Flight Cancellations, Government Investigation Ordered

New Delhi, India – Shares of Interglobe Aviation, the parent company of India’s largest airline, Indigo, plummeted over 8% on Monday as the carrier continues to face significant operational disruptions and a government investigation. The crisis stems from the implementation of revised Flight Duty Time Limitations (FDTL) norms for pilots, which came into effect on November 1st.

The new regulations, aimed at improving pilot well-being by increasing rest periods and reducing late-night flights, led to widespread flight cancellations. On Friday, Indigo, which typically operates over 2,300 daily flights, managed to fly only 706. While the airline reported operating 1,650 flights on Sunday and anticipates network stabilization by Wednesday, the damage to its reputation and financial standing is already significant.

India’s Civil Aviation Minister, Ram Mohan Naidu, announced on Monday that the government has launched an investigation into the disruptions, warning of “strict action” and consequences for non-compliance.

Passengers have faced extensive delays, with some, like EY consultant Chirag Shah, experiencing an 11-hour delay. Shah, traveling from Abu Dhabi to Mumbai with his family, highlighted the airline’s “worrying lack of passenger support” during the ordeal. He told CNBC that passengers with single-entry visas were left stranded and that a free McDonalds meal coupon was the only conciliation offered.

The airline had been directed to process refunds for cancelled and severely delayed flights by Sunday evening, and reported processing 6.1 billion rupees (USD 67.6 million) in refunds as of 5 PM that day. However, it remains unclear if all eligible passengers have received their due compensation.

Indigo attributed the cancellations to challenges in crew planning and the implementation of the new FDTL norms. Following Friday’s peak in disruptions, the government temporarily suspended the implementation of the new FDTL rules.

Indigo CEO Pieter Elbers has been ordered by the aviation watchdog to explain the disruption.

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