IndiGo Fiasco Unlikely To Resolve Soon: What Irks The Indian Skies?

The question, then, is: will the airline, which enjoys over 60% market share, be able to resume normal operations within the next couple of months? Even on Monday, December 8, the airlines announced cancellations of about 400 flights.

Challenges To Get More Pilots On Board

To adhere to the new FDTL, it would require an additional 65 pilots and about 70 to 75 first officers on an immediate basis. Now comes the problem: hiring a pilot is not as simple as it sounds, since it is time-consuming.

A trained pilot will take upward of six months to join the airline if the latter has to recruit from the existing pool. Pilots have to continue operating with the existing airline for a minimum of six months, as part of the notice period, in case they decide to join IndiGo.

Besides, other airline companies, including Air India, earmark substantial funds to train new pilots and other crew members, which often becomes mandatory for them to make up for if they decide to join the competition.

The issue was further aggravated when IndiGo decided to increase the number of flights. About 150 flights have been added on a daily basis.

“The promise given by the airlines, that it would somewhat settle the situation by the mid of December and fully restore operations by February, is absolutely false and undoable. There is no way that it would be able to restore services as the shortage of pilots cannot be addressed in such a short time,” Captain C.S. Randhawa, president, the Federation of Indian Pilots, told The Secretariat.

Randhawa pointed out that despite the Directorate General of Civil Aviation (DGCA) announcing the implementation of the new FDTL norms in January 2024, the airline “simply chose to disregard” the regulator’s order.

“It is appalling that the airline has now got an extension from the DGCA in conforming to the new FDTL rules. The fresh slots that have been given to IndiGo need to be scrapped. Instead, it managed to get away with the misdoings,” Randhawa said.

DGCA Draws Flak

The IndiGo episode has brought the DGCA under the scanner as well, as many have sought explanations from the regulator for "being selective" in its approach while raising concerns over unsafe standards.  

The airline’s failure to adhere to the new FDTL norms and the regulator’s swift decision to allow IndiGo an extension till February to resolve the situation have come as a shock to many.

The Airline Pilots' Association of India (ALPA India) has already brought up the issue with the DGCA, which has issued a show-cause notice to IndiGo. Then show-cause notice read, “You [the airlines] have failed in your duty to ensure timely arrangements for the conduct of reliable operations and the availability of requisite facilities for the passengers.”

IndiGo's Board Of Directors Face Criticism

The airline has already sought an extension to respond to it, even as the government is expected to seek the reconstitution of the Board of Directors. Simply put, the Board of Directors needs to be held accountable.

“Had the Board been seized of the matter, it would have known the new regulatory requirements. It needs to be held answerable,” Amarjit Chopra, former president, Institute of Chartered Accountants of India (ICAI) said, adding that "it should have made financial arrangements for the new pilots and crew members on time". 

“This is a serious regulatory requirement and, in case the Board felt that the new recruitment was taking time or there were other hurdles, it should have informed the authorities in time before the deadline,” Chopra further said.

Notably, Amitabh Kant, former Niti Aayog CEO, joined the Board as a Non-Executive Non-Independent Director of the company in September this year, after he decided to quit as India's G20 Sherpa. Apart from Kant, M. Damodaran, former Chairman of the Securities and Exchange Board of India (SEBI), and Pallavi Shroff, Managing Partner of Shardul Amarchand Mangaldas & Co., are also among those on the Board of Directors.

While Vikarm Singh Mehta serves as the Chairman and Non-Executive Independent Director of the company, Rahul Bhatia is the Group Managing Director, InterGlobe Enterprises, and the Promoter and Managing Director of InterGlobe Aviation Limited (IndiGo).

India’s Skewed Aviation Sector

Despite a surge in air traffic, the sector continues to be dominated by IndiGo.

At the same time, after its merger with Vistara, the Tata-Singapore Airlines (SIA) joint venture, Air India now has a market share of a little over 27%.

In India, with the rise in disposable income, air travel is rapidly gaining preference as it is currently the third-largest domestic aviation market in the world, supported by rising disposable incomes, urbanisation, and increasing preference for air travel.

According to an official press release, the passenger traffic is expected to grow sixfold, to around 1.1 billion. It noted that India’s commercial airline fleet is predicted to reach around 2,359 in March 2040. It was just 400 in 2014.

However, it goes on to show the inherent problems of the aviation sector, which has witnessed the closure of several airlines in the past.