BS EDIT: The IndiGo Fiasco: A Case Study in Governance

By Business StandardPublished On Dec 9, 2025

The Perfect Storm

The crisis is a collective failure at multiple levels: executive management, board, and the sector regulator

It highlights endemic weaknesses in India's corporate governance framework

The Missed Red Flag

New Flight Duty Time Limitation (FDTL) rules were the most consequential operational shift for 2025

Astonishingly, they were absent from IndiGo’s Annual Reports and Risk Management assessments

Management Myopia

This omission implies a critical failure: management did not anticipate operational challenges from the new rules

It raises fundamental questions about executive foresight and basic capabilities

Boardroom Lapses

The board, comprising global aviation and governance luminaries, failed in its fiduciary duty

It did not question management on FDTL preparedness before the crisis, despite its expertise

Regulatory Failure

The DGCA’s response has been weak. Instead of enforcing sustainability, it granted a one-time exemption

This penalises compliant airlines and questions regulatory objectivity

The Bigger Picture

Such all-round governance failures—management, board, and regulator—do not reflect well on India Inc

They undermine systemic trust and market integrity, demanding serious corrective reflection