India’s aviation sector needs a regulatory reset

IndiGo received only a mild rap for its mess-up in December. The meekness of DGCA while dealing with the monopoly exposes its inability to provide redress to passengers and address structural issues plaguing the industry

- Anjuli Bhargava

The penal action against IndiGo for precipitating the aviation crisis last year in December, which left thousands of fliers stranded by multiple flight cancellations and extended delays, turned out to be a mere slap on the wrist. After a detailed investigation into the episode — caused by IndiGo's failure to be ready in time for the new flight duty time limitations (FDTL) regime — the directorate general of civil aviation (DGCA) last week announced a penalty of just ₹22 crore and merely issued warnings to a few key airline personnel.

The DGCA report should stoke concern in the airline’s boardroom and top management — it rules out any kind of systemic, procedural, or process failure or any acute shortage of personnel and almost entirely blames human negligence or incompetence, and indicts specific members of the airline’s top management, even ordering the removal of one. The IndiGo board is conducting its own investigation to determine and address the factors that caused the meltdown, and some tough decisions are expected, given the financial and reputational hit to the airline. Some airline personnel believe the credibility of the board and the promoters now hinges on the actions taken; this alone can secure the future of IndiGo’s carefully built business. Failing to do this, they say, will lend credence to the airline's estranged co-founder Rakesh Gangwal's allegations of misgovernance; Gangwal had earlier said that the airline was being run like a paan (betel) shop.