IndiGo Asked To Reduce Services Until February

IndiGo Asked to Reduce Services Until February

DGCA is likely to ask IndiGo to reduce daily flights until February. IndiGo has already axed over 5,000 flights this month due to a shortage of pilots. Till now, the airline operated around 2,300 flights every day with its existing fleet. Sources indicated that DGCA may ask for the elimination of about 300 flights per day under the winter schedule. The winter schedule continues till the end of March. However, since IndiGo intends to hire 158 more pilots by February, DGCA may ask the airline to maintain reduced services till then. As passenger traffic is heavy during the winter season, the government may advise Air India and other carriers to increase operations to meet the demand.

Moody’s assigns IndiGo a negative credit outlook.

IndiGo has faced revenue losses due to shortages in its staff and disruptions in its operations. The carrier canceled 755 flights last month and 5,000 flights so far this month. On Sunday, the company announced refunds of ₹610 crore to passengers due to the flights that IndiGo canceled. On knowing almost two years in advance about pilot fatigue rules that necessitate a larger staffing, the airline failed to hire adequate personnel. Due to cancellations every day, IndiGo suffered consistent revenue loss. Moody’s reported on Monday that IndiGo may face penalties imposed by the government by causing inconvenience to large numbers of passengers. These factors have exerted negative pressure on the credit rating of the airline. Although IndiGo has obtained temporary relief related to the enforcement of certain new aviation rules, the failure to implement updated regulations effectively is also treated as a negative factor.

Moody's said IndiGo's revenue will continue to decline because of flight cancellations, fare refunds, and other compensation measures. According to the agency, the penalties imposed by the DGCA will only aggravate the matter. It added that the roots of the current problems lay in gaps related to IndiGo's planning, monitoring, and resource management.

Air India Offers Support to Affected Passengers

While IndiGo continues to cancel hundreds of flights daily, Air India and Air India Express have stepped in to support affected passengers. They are offering a one-time waiver on date-change fees and cancellation charges for eligible travellers. Passengers who booked tickets on or before December 4 and are scheduled to travel till December 15 can change their travel dates without paying additional fees. They may also cancel their tickets and receive full refund. These options remain available till December 8. In case the fare on the new date is higher, passengers must pay the difference. Air India advised customers to contact its 24×7 call centres or travel agents for assistance. Air India Express said travellers can also reach out to its chatbot.Air India said that the existing concessionary fares for students, senior citizens and armed forces personnel would continue without any revision.

IndiGo Shares Fall 8% Shares of InterGlobe Aviation, the parent company of IndiGo, fell 8.28% on Monday to close at ₹4,926.55 on the BSE in the wake of large-scale flight cancellations and huge refund amounts. The stock, which touched a low of ₹4,842.20 during the day, has fallen 16.4% in the last six trading sessions, shedding about ₹37,000 crore from its market value.