New Delhi, Dec 8 (IANS) Widespread flight disruptions at IndiGo are credit negative, and refunds and compensation could cause it "significant financial damage", credit rating agency Moody’s warned on Monday.
In a note, Moody's said that regulatory penalties from the Directorate General of Civil Aviation (DGCA) remain possible as the airline failed to plan for aviation rules communicated over a year earlier.
The crisis struck as the airlines entered their peak winter schedule, with "significant lapses in planning, oversight and resource management" as the Phase 2 of the Flight Duty Time Limitation (FDTL) rules were introduced on November 1, 2025, after being communicated more than a year earlier, it noted.
The rules reclassified midnight–6 a.m. duties as night duty and cut permissible landings in 24 hours from six to two or three. The agency said that IndiGo’s lean operating model lacked resilience to integrate the change, forcing a system‑wide schedule reset.
Over 1,600 flights were cancelled on December 5, and over 1,200 were grounded in November, with cancellations beginning on December 2. Moody’s said IndiGo is yet to fully restore normal operations.
IndiGo said it was set to operate over 1,800 flights on Monday, up from 1,650 on Sunday, adding that more than 4,500 bags have been delivered to respective customers, and "we are on track to deliver the rest in the next 36 hours".
The airline said it expects a return to full schedules by mid-December, adding that it is working "round the clock" to normalise operations.
It has so far refunded Rs 827 crore to affected passengers, and the rest is under process for cancellations up to December 15.
Union Civil Aviation Minister K. Rammohan Naidu said in the Parliament on Monday that the government has initiated a thorough inquiry into the matter.
"IndiGo was supposed to manage the crew and roster…We will take strict action. We will set an example for every airline. If there is any non-compliance, we will take action," he said on the floor of the Rajya Sabha.
--IANS
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