The aviation regulator, DGCA, has imposed a penalty of Rs 22.20 crore on IndiGo and ordered the airline to furnish a Rs 50-crore bank guarantee for nationwide flight disruptions in December 2025 that stranded over three lakh passengers.The action comes after a government-directed inquiry found that systemic failures, weak oversight and aggressive over-optimisation of crew and aircraft led to the chaos.The Directorate General of Civil Aviation (DGCA) had constituted a four-member committee on the directions of the Ministry of Civil Aviation to examine the large-scale delays and cancellations between December 3 and 5 last year, during which IndiGo cancelled 2,507 flights and delayed 1,852 flights across the country.Airline told to furnish Rs 50-cr bank guarantee* DGCA has directed the airline to furnish Rs 50-crore bank guarantee to ensure compliance with its directives and long-term reforms* It has cautioned InterGlobe Aviation CEO Pieter Elbers for inadequate oversight of flight operations and crisis management* The aviation regulator has directed the airline to act against erring officials identified in internal probe and submit a compliance reportThe committee’s findings, now accepted by the DGCA, concluded that the primary causes for the disruption were “over-optimisation of operations, inadequate regulatory preparedness along with deficiencies in system software support and shortcomings in management structure and operational control on the part of IndiGo”.The inquiry observed that the airline’s management failed to identify planning deficiencies, did not maintain sufficient operational buffer and was unable to effectively implement the revised flight duty time limitation (FDTL) provisions.It noted that IndiGo’s “overriding focus on maximising utilisation of crew, aircraft and network resources significantly reduced roster buffer margins,” which compromised operational resilience and resulted in large-scale delays and cancellations. Crew rosters were stretched to maximise duty periods and relied heavily on dead-heading, tail swaps and extended duty patterns, weakening the airline’s ability to recover from disruptions.Based on these findings, the DGCA has initiated enforcement action against senior officials of InterGlobe Aviation. CEO Pieter Elbers has been cautioned for inadequate oversight of flight operations and crisis management. The accountable manager and COO has been warned for failing to assess the operational impact of the Winter Schedule 2025 and the revised FDTL CAR. The senior vice-president of the Operations Control Centre has been warned and directed to be relieved of operational responsibilities and barred from holding any accountable position.According to DGCA officials, warnings have also been issued to the Deputy Head of Flight Operations, AVP of Crew Resource Planning and the Director of Flight Operations. IndiGo has been directed to take action against any other personnel identified through its internal inquiry and submit a compliance report.The DGCA has imposed a one-time penalty of Rs 1.80 crore on IndiGo for six separate violations of regulatory provisions, including failure to implement an effective FDTL scheme, failure to balance commercial imperatives with crew fatigue, improper delegation of operational control and failure of accountable management to ensure DGCA-compliant operations.In addition, the regulator imposed a further penalty of Rs 20.40 crore for 68 days of continued non-compliance with the revised FDTL CAR provisions from December 5, 2025, to February 10, 2026, bringing the total penalty to Rs 22.20 crore.To ensure long-term reforms, IndiGo has been ordered to pledge a Rs 50 crore bank guarantee under the IndiGo Systemic Reform Assurance Scheme. The phased release of this guarantee will be tied to verifiable reforms in leadership and governance, manpower planning and fatigue-risk management, digital systems and operational resilience, and sustained board-level oversight.The DGCA has acknowledged that IndiGo restored its operations to normal levels swiftly and ensured timely refunds and compensation for affected passengers. “Further, on the directions of MoCA, an internal inquiry is being undertaken to identify and implement systemic improvements within the DGCA,” said the official.