The aviation business, especially low-cost carriers like IndiGo, works on high volume, standardization (one aircraft type), and cost efficiency, but faces challenges from fuel prices, regulations, and operational resilience, as seen with IndiGo’s recent crisis caused by failing to adapt to new mandatory crew rest rules, leading to mass cancellations, stranded passengers facing exorbitant fares/baggage issues, and government intervention. Passengers experienced chaos with delays, cancellations, lost luggage, and difficulties rebooking, while IndiGo faced criticism for poor planning, financial damage, and lack of transparency.
How Aviation Business Works (IndiGo Model)
- Cost Leadership: Focuses on low fares by minimizing costs, often through a single aircraft type (Airbus A320 family for IndiGo) for standardized training, maintenance, and parts.
- High Utilization: Aims for rapid turnaround times and maximum use of aircraft and crew to boost revenue.
- Lean Operations: Efficient in stable times but vulnerable to unexpected shocks, as seen with recent rule changes.
- Revenue Drivers: Ticket sales, cargo, ancillary services (baggage, seat selection).
IndiGo’s Recent Crisis Explained
- Root Cause: New Flight Duty Time Limitation (FDTL) rules by the DGCA requiring more pilot/crew rest hours, which IndiGo failed to plan for despite having over a year’s notice.
- Consequence: Shortage of legally rested crew, grounding many planes, leading to a massive drop in on-time performance (68% in Nov) and over 1,200 cancellations in November alone.
- Contributing Factors: Winter fog, tech glitches, airport congestion, and rising Aviation Turbine Fuel (ATF) costs added pressure.
How Passengers Faced the Crisis
- Mass Cancellations & Delays: Thousands stranded, facing hours-long waits.
- Exorbitant Fares: Demand surged on other airlines (Indian Railways also stepped in).
- Baggage Chaos: Damaged bags, missing luggage, with slow resolution.
- Poor Communication: Lack of timely updates, leading to more frustration.
- Financial Strain: Passengers incurred extra costs for hotels, transport due to last-minute disruptions.
IndiGo’s Response & Government Action
- IndiGo reset schedules, gradually restored flights, and sought regulatory extensions.
- Ministry of Civil Aviation conducted surprise checks, directed immediate rectification, and monitored crew planning.
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