Centre orders IndiGo to fast-track compensation after mass flight cancellations

The Central Government directed IndiGo Airlines to immediately roll out compensation for passengers affected by widespread flight cancellations and delays earlier this month, instructing the carrier to expedite payouts and ensure that no eligible passenger is excluded from relief measures.

The directive was issued by Aviation Secretary Samir Sinha during a high-level review meeting, amid mounting complaints from stranded passengers and delayed refunds. Officials said IndiGo has been asked to complete the compensation process in a time-bound manner and maintain transparency throughout.

As part of the relief package, IndiGo will begin issuing travel vouchers worth ₹10,000 each from December 26 to passengers who were severely impacted during the disruption period of December 3, 4, and 5, when thousands were stranded at airports for several hours. The vouchers will be issued in addition to the mandatory cash compensation of ₹5,000 to ₹10,000, as stipulated under existing government aviation norms.

According to officials, IndiGo has been instructed to initiate compensation payments within a week for passengers who booked tickets directly through the airline’s website, as their booking details are readily accessible. For passengers who booked through online travel agencies (OTAs) or travel agents, the airline has been directed to collect passenger data from these platforms and disburse compensation directly, with the process expected to begin at the earliest.

The Directorate General of Civil Aviation (DGCA) has been tasked with ensuring that compensation reaches every affected passenger, while the Civil Aviation Ministry will monitor the process through its Air Seva grievance redressal portal.

Despite IndiGo stating that refunds have been initiated, several passengers who booked tickets through OTAs continue to face delays. A south Delhi-based banker, Asha Sen (name changed), said she had partially paid for her December 7 flight from Udaipur to Delhi using credit card reward points. “IndiGo says the refund has been initiated, but the OTA has yet to process it. Both my reward points and the card payment are still stuck,” she said.

IndiGo executives, however, maintained that refunds for all cancelled flights during the disruption period were processed in full without deductions, asserting that the responsibility now lies with OTAs to transfer the amounts to passengers. Sources said several major OTAs, including MakeMyTrip, had begun issuing refunds even before receiving funds from the airline, with MakeMyTrip alone reportedly disbursing close to ₹10 crore. Last week, the DGCA convened a meeting with OTAs and directed them to ensure full refunds without any cuts.

Between December 1 and 9, IndiGo cancelled a total of 4,354 flights. Of these, 2,456 domestic and 51 international flights were cancelled on December 3, 4, and 5 alone. Based on an estimated average of 150 passengers per cancelled flight for these 2,507 services—excluding passengers affected by long delays—the airline may have to issue travel vouchers to over 3.8 lakh passengers. The total compensation outgo is estimated to exceed ₹376 crore.