New Delhi: Shares of IndiGo continued to slide for a second straight day after India’s aviation regulator issued a show cause notice to the airline over large scale flight disruptions. The company has lost nearly 4 billion dollars in market value since the crisis began and now stands at around 21 billion dollars.
The Directorate General of Civil Aviation asked IndiGo’s leadership to explain why it failed to prepare for new pilot duty and rest rules that came into effect on November 1. The updated regulations reduced the number of night flying hours allowed for pilots. The regulator said the airline did not make enough arrangements to handle the changes and this led to cancellations and delays across the country.
Thousands of passengers were stranded last week as the airline cancelled hundreds of flights, especially in busy airports like Mumbai and Bengaluru. Many travellers reported long queues, missing connections and higher ticket prices. The government later stepped in and capped fares on some routes to prevent sudden price increases.
IndiGo’s chief executive and chief operating officer were given more time to respond to the notice. The regulator called this a one time extension and said a complete reply must be submitted by Monday evening. It also warned that further action may follow depending on the response and review.
IndiGo has admitted that it struggled to adjust operations to the new rules and said it is working to stabilise the situation. The airline has promised refunds and assistance to affected passengers and said it expects operations to normalise by mid December.
The disruption has also raised concerns about India’s aviation system because IndiGo controls more than 60 percent of the domestic market. Analysts say such a large share means problems at one airline can affect the entire sector.
While operations have begun improving, investor confidence remains weak. Some rival airlines have seen an increase in bookings during the crisis.
Authorities will now review IndiGo’s formal reply before deciding the next steps. Many passengers and industry experts are watching closely to see how the situation develops in the coming days.