Indigo Airlines Faces Turbulence: Internal Disputes, Operational Hiccups, and the Struggle of India’s Largest Carrier
Indigo Airlines Faces Turbulence: Internal Disputes, Operational Hiccups, and the Struggle of India’s Largest Carrier
Indigo Airlines, one of India’s leading carriers, is currently navigating through a significant crisis. Across the country, numerous flights have been canceled, affecting thousands of passengers. Holding over 60% of India’s domestic market, the airline is grappling with operational challenges that are tarnishing its reputation and resulting in financial losses. Over 200 flights were canceled on Tuesday and Wednesday alone. Amid this turbulence, questions arise: who is at the helm of Indigo, and what has led to these disruptions? Let’s explore the story behind the airline’s current struggles.
The Beginnings of Indigo
Indigo was founded in 2005 by Rahul Bhatia and Rakesh Gangwal, who decided to launch a new airline in India. Bhatia was well-known for his deep understanding of business and aviation in India, while Gangwal brought extensive international experience, having worked with major US carriers like US Airways and United Airlines. Together, they envisioned an airline that would operate efficiently, keep fares affordable, and provide passengers with reliable, hassle-free service 24/7.
Leadership and Rising Tensions
Rahul Bhatia remains a co-founder of Indigo, as well as its promoter and managing director. Initially, both founders worked closely to build the airline. However, over time, differences between them began to surface. Disagreements intensified, with Gangwal raising concerns through InterGlobe Enterprises regarding Bhatia’s control over Indigo, board transparency, and related-party transactions. The disputes escalated to the Securities and Exchange Board of India (SEBI), with Gangwal filing a formal complaint in 2019.
The conflict eventually moved into legal channels, even reaching arbitration in London. In February 2022, Gangwal resigned from the board, announcing plans to gradually sell his stake over the next five years. Since then, he has been slowly divesting his shares. Today, Indigo remains the largest player in India’s domestic aviation market, holding more than a 62% share.
Operations and Current Challenges
Indigo operates over 2,100 flights daily and employs more than 39,000 people. Despite its scale, the airline is currently facing a series of operational challenges. According to the company, recent disruptions are due to minor technical issues, changes in schedules related to the winter season, poor weather, and increased congestion in air traffic management.
Adding to these difficulties, new flight duty time regulations introduced by the Directorate General of Civil Aviation (DGCA) on November 1 have further strained operations. Following a Delhi High Court order, pilots’ allowable flight hours have been restricted from midnight to 6 a.m., with weekly rest periods also extended. These regulatory changes have reduced crew availability, directly impacting flight operations.
