Pilots blame IndiGo’s ‘lean strategy’ for flight chaos; DGCA summons airline as shares dip

IndiGo stock slumps as low as 3.5% following a slew of flight cancellations as revised FDTL norms take effect

IndiGo flight at Delhi airport An April 2022 file photo of an IndiGo flight at Delhi airport | Nitin SJ

Two major pilot associations have launched a scathing attack on IndiGo, blaming the airline’s "unorthodox lean manpower strategy" and "hiring freeze" for the massive flight disruptions that have left thousands of passengers stranded across India this week.

The Federation of Indian Pilots (FIP) alleged that despite having a two-year window to prepare for the revised Flight Duty Time Limitations (FDTL) norms, the airline "inexplicably adopted a hiring freeze" and "pilot pay freeze through cartel-like behaviour," agencies reported. 

In a letter to the aviation regulator DGCA, the body claimed the current chaos is a "direct consequence" of these cost-cutting measures rather than the new regulations themselves.

Adding to the pressure, the Airline Pilots' Association of India (ALPA) suggested that the disruptions might be a tactic by the country’s largest carrier. 

They claimed the situation points to a "failure of proactive resource planning" and could be "an effort to pressurise the regulator to dilute the promulgated FDTL norms for commercial gain," PTI noted.

Multiple media reports stated that The Directorate General of Civil Aviation (DGCA) has taken note of the crisis, summoning IndiGo officials for a meeting on Thursday morning to explain the widespread cancellations and present a plan to restore normalcy.

The NSE also asked IndiGo for clarification on the news, and IndiGo responded stating that no such regulatory "probe" was done. "We clarify that the Company is not aware of any probe by the Directorate General of Civil Aviation (DGCA). The DGCA, however, has sought certain information in connection with the said matter and the Company is in the process of providing the same," it cited in a response to stock markets. 

On December 3, IndiGo acknowledged the operational breakdown in a statement, citing a "multitude of unforeseen operational challenges," including weather, technical glitches, and the implementation of new crew rostering rules. The airline apologised to customers and announced "calibrated adjustments" to its flight schedules for the next 48 hours to stabilise operations.

The markets swiftly punished the airline on Thursday. IndiGo’s parent company, InterGlobe Aviation, saw its shares trade lower on the stock exchanges today, reflecting investor concern over the continued operational instability. IndiGo stock dropped to as low as Rs 5,397 apiece (down 3.5 per cent) versus Wednesday’s Rs 5,595.50 close in the NSE.

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