IndiGo Chaos Triggers Sky-High Fares! 1000+ Flights Cancelled, Airfares Skyrocket 15x!
Overview
Over 1000 IndiGo flights were cancelled on December 5, causing widespread travel chaos and pushing airfares to record highs, sometimes 15 times normal rates on key routes like Kolkata-Mumbai. Other airlines also saw surge pricing. The aviation ministry is working towards full service restoration within days, while DGCA investigates IndiGo's planning failures. IndiGo has been ordered to provide refunds and accommodate stranded passengers.
Stocks Mentioned
IndiGo has faced massive flight cancellations, exceeding 1000 on December 5, leading to significant travel disruptions across India and unprecedented surges in airfares. The Directorate General of Civil Aviation (DGCA) is investigating the operational issues.
What Happened
IndiGo cancelled over 1000 flights, more than half its daily operations, on December 5. This caused significant passenger inconvenience and operational paralysis for the market leader. The airline acknowledged a failure to anticipate crew requirements under revised Fatigue and Draft Limit (FTDL) norms.
Skyrocketing Airfares
The cancellations led to a dramatic spike in airfares on popular routes. For instance, a one-way SpiceJet ticket from Kolkata to Mumbai reached Rs 90,282, a 15-fold increase, while Air India's fare on the same route was Rs 43,000. Goa to Mumbai flights on Akasa Air saw prices over four times the average.
Government Intervention
Civil Aviation Minister Ram Mohan Naidu Kinjarapu assured that services would be fully restored within three days, following the decision to put the DGCA's FDTL order in abeyance. Experts note the government has the power to cap airfares during such crises. The aviation ministry issued directives for automatic full refunds and hotel accommodation for stranded passengers.
DGCA Investigation
The DGCA is probing the crisis, citing significant planning and assessment gaps by IndiGo in implementing the revised FDTL CAR 2024. A four-member committee has been formed to investigate the matter.
IndiGo's Outlook
IndiGo CEO Pieter Elbers expects a full restoration of flights between December 10 and 15.
Past Precedents
The article recalls a past instance where the civil aviation ministry capped fares out of Srinagar to ensure affordability after an attack, reducing fares from Rs 65,000 to Rs 14,000.
Impact
- Significant financial strain on affected passengers.
- Operational challenges and potential revenue loss for IndiGo.
- Increased scrutiny on airline operational planning and regulatory oversight.
- Potential shift in passenger confidence towards other airlines.
Impact Rating (0-10): 7
Difficult Terms Explained
- FDTL CAR 2024: Fatigue and Draft Limit (FTDL) regulations, referring to rules managing pilot and crew rest periods to ensure safety and prevent fatigue.
- DGCA: Directorate General of Civil Aviation, India's aviation regulatory body.
- Abeyance: A state of temporary inactivity or suspension.
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