IndiGo Faces Over ₹500 Cr Payout After Mass Flight Cancellations, Refund Details Awaited

IndiGo on December 12 estimated a payout of more than ₹500 crore ($55.19mn) in total to customers impacted by the carrier's mass cancellations last week, reported Reuters.

The airline had to cancel about 4,500 flights last week due to inadequate pilot roster planning, leaving tens of thousands of passengers stranded. The civil aviation regulator then ordered the airline to reduce its domestic winter schedule by 10%.

The budget airline said in a post on X it was in the process of identifying flights where passengers were negatively affected and left stranded at airports on December 3, 4 and 5.

IndiGo will compensate customers whose flights were "cancelled within 24 hours of departure time and/or to customers severely stranded at certain airports," it added.

Operational Planning Failures Exposed

IndiGo faced criticism for failing to plan for the new rest periods and duty rules, leaving planes grounded and disrupting travel plans.

The Indian carrier had on December 10 cut its capacity and passenger unit revenue forecast for the third quarter in response to a reduction in its winter schedule.

Refund Process Details Awaited

According to reports, details on the process of claiming the compensations are awaited. Reiterating its commitment to issuing refunds promptly, the airline has stressed that the process will be designed to be simple and transparent for passengers.

“Our goal is to make this process as transparent, easy, and hassle-free as possible for you. Your patience and understanding mean a lot to us. Please know that we are here for you and will continue working diligently until everything is set right,” the airline mentioned in a statement released on X on December 12.

IndiGo Investigates Flight Disruptions

Meanwhile, IndiGo has hired Chief Aviation Advisors LLC, under the direction of seasoned aviation specialist Captain John Illson, to conduct a "root cause analysis of the recent operational disruption" that impacted thousands of travellers nationwide, particularly in major air travel hubs.

According to a statement by the airline, the independent aviation expert will start the review at the earliest and submit a comprehensive report to the board. This decision follows the recommendation of the Crisis Management Group (CMG) constituted by the IndiGo Board.

“As part of its assessment, the CMG advised commissioning an independent expert review in the matter. With the Board’s approval now in place, the review will begin at the earliest, and the independent expert reviewer will submit a comprehensive report to the Board upon completion,” an IndiGo spokesperson told The Indian Express. The airline has not revealed the time frame of analysing the root cause of the crisis.