Delhi HC hears DGCA action against IndiGo over mass flight cancellations

The court also sought clarification from the airline on whether passengers offered ₹10,000 travel vouchers would be allowed to redeem them even after the vouchers’ validity period expires.

The Directorate General of Civil Aviation (DGCA) informed the Delhi high court on Thursday that it has issued warnings to senior IndiGo executives, including the chief operating officer and a director, and ordered the dismissal of a senior vice president over operational disruptions that left thousands of passengers stranded at airports across the country late last year.

An IndiGo aircraft on the tarmac at Indira Gandhi International airport in New Delhi. (Bloomberg)

The court also sought clarification from the airline on whether passengers offered ₹10,000 travel vouchers would be allowed to redeem them even after the vouchers’ validity period expires.

Appearing for the aviation regulator, additional solicitor general Chetan Sharma and advocate Anjana Gosain told a bench headed by Chief Justice DK Upadhyaya and Justice Tejas Karia that a four-member committee appointed by the DGCA found the crisis was caused by “over-optimisation of operations, inadequate regulatory preparedness, deficiencies in system software support, and shortcomings in the management structure”. Based on the findings, the DGCA imposed a penalty of ₹22.2 crore on the airline.

The law officer said the committee’s report had been submitted to the court in a sealed cover. He added that the DGCA also issued warnings to the deputy head of flight operations and a resource planning analyst, and directed IndiGo to deposit ₹50 crore as a bank guarantee. The amount will be refunded once the airline implements the required operational corrections.

The submissions were made in a petition filed by advocates Akhil Rana and Utkarsh Sharma seeking a judicial inquiry into the mass cancellation of flights, and compensation and ground support for stranded passengers.

On December 10, the high court had criticised the Centre and the DGCA for failing to act promptly against IndiGo for not deploying sufficient manpower to meet new Flight Duty Time Limit (FDTL) norms. The lapses had resulted in widespread cancellations and delays, leaving passengers stranded across airports. The court had also asked the airline to compensate passengers not only for cancellations but also for the hardship suffered.

During Thursday’s hearing, IndiGo’s counsel said the airline had processed 100% refunds for cancelled tickets and had started issuing ‘Gesture of Care’ travel vouchers worth ₹10,000. The vouchers are valid for 12 months and can be redeemed on any IndiGo flight. He clarified that the vouchers were being issued for flights cancelled or delayed by more than three hours between December 3 and December 5 last year.

The disruption led to the cancellation of 2,507 flights and delays to 1,852 flights during that period.

The airline’s counsel further said compensation for cancelled tickets, as required under Civil Aviation Requirements (CAR), was being worked out and that a dedicated website had been set up for passengers to submit their details.

However, the petitioners argued that passengers should be allowed to redeem the vouchers even if they are unable to travel within the validity period.

Taking note of the submissions, the court asked IndiGo’s lawyer to seek instructions on whether vouchers could be redeemed after expiry. “Suppose there is a passenger who does not travel during this period, then? Take instructions. File an affidavit,” the bench said, fixing February 25 as the next date of hearing.

In its order, the court recorded: “On a query, counsel for IndiGo submits that refund of the cancelled tickets has already been made. However, the process for paying the compensation for cancellation as well as the compensation to the stranded passengers is being worked out and that shall also be paid at the earliest. Let an affidavit be filed to the said effect by IndiGo in two weeks.”

The matter will be heard next on February 25.