India's aviation sector is facing severe turbulence as InterGlobe Aviation, the parent company of the country's largest airline IndiGo, grapples with a massive operational crisis. The disruption has led to a significant sell-off in its shares and left thousands of passengers stranded across airports.
Market Takes a Hit as Shares Tumble
The financial markets have reacted sharply to the ongoing chaos. Shares of InterGlobe Aviation have fallen more than 7 per cent over the past four trading sessions. On Friday, December 8, the stock closed 1.22 per cent lower at Rs 5,371.30 on the BSE, after hitting an intraday low of Rs 5,266. On the National Stock Exchange (NSE), it ended at Rs 5,367.50, down 1.27 per cent.
The impact on the company's valuation has been substantial. Since December 1, InterGlobe Aviation's market capitalisation has eroded by a staggering Rs 16,190.64 crore, settling at Rs 2,07,649.14 crore. This decline reflects investor concerns over the airline's immediate operational stability and the financial implications of the widespread cancellations.
Root Cause: New Pilot Duty Regulations
The core of the crisis stems from recently implemented regulations governing pilot flying hours. The new rules mandate increased weekly rest periods for pilots and impose stricter limits on night-time landings. Key changes include:
- Weekly rest requirements have been increased to 48 hours.
- Night-time landings are now capped at two per week, a significant reduction from the earlier limit of six.
IndiGo has acknowledged that "misjudgment and planning gaps" in adapting to these new norms led to a severe roster mismatch, forcing the airline to cancel flights on a large scale. The airline, which commands nearly two-thirds of India's domestic air traffic, has been forced to cancel over 1,000 flights, including all departures from its key hub in New Delhi.
Passenger Chaos and the Path to Recovery
For the fourth consecutive day, India's air travel network remained severely disrupted. Passengers reported being stranded at airports for hours with limited information and unclear alternatives. The scale of cancellations has highlighted the fragility of the system when its largest player faces operational hurdles.
Addressing the situation, IndiGo's CEO Pieter Elbers stated on Friday that operations are expected to normalise between December 10 and 15. The airline is working to re-rostering its pilots in compliance with the new regulations and to clear the backlog of affected passengers. The timeline provides a glimmer of hope for travellers relying on IndiGo's extensive network during the busy year-end travel season.
This incident serves as a stark reminder of the complex challenges facing the aviation industry, where regulatory changes, manpower planning, and operational scalability must be perfectly aligned to ensure seamless service for millions of passengers.
