IndiGo flight cancellations may be intentional, alleges Ram Mohan Naidu; hints at firing CEO Pieter Elbers: Report
The IndiGo flight cancellations since December 2 has led to massive disruptions across the country, bringing air traffic to almost a halt and stranding lakhs of passengers at airports.
CIVIL Aviation Minister K Ram Mohan Naidu has hinted at a deliberate strategy behind IndiGo’s flight disruptions. He also indicated that he might sack CEO Pieter Elbers if the situation demands it.
In an interview with The Times of India (TOI), Naidu accused IndiGo of potentially cancelling nearly 5,000 flights intentionally over the past nine days. The cancellations, which began on 2 December, have caused massive disruption nationwide, bringing air traffic to almost a halt and stranding thousands of passengers.
“There seems to be some kind of intentional thing. The way they have been operating, the way they have control over their operations, this shouldn't have happened,” TOI quoted the minister as saying.
Also Read | IndiGo drops 2% as DGCA asks to cancel 10% flights, yet HSBC remains bullish
Naidu confirmed that a thorough investigation is underway and will be followed by “very strict and appropriate enforcement action”.
“Why has it come at that specific point of time? How did it lead us into that situation? This is something we are thoroughly investigating. And it will be followed by very strict and appropriate enforcement action,” he said.
In its first concrete action, India’s civil aviation regulator and the aviation ministry have asked IndiGo to cut its winter schedule flights. Naidu separately announced a 10% reduction in IndiGo’s overall schedule, whereas the DGCA, in its initial order, requested a 5% curtailment in operations.
The 10% flight cut of IndiGo could mean that around 220 aircraft of the carrier will be curtailed. “Accordingly, the approved winter schedule of IndiGo should be reviewed and curtailed by a minimum 10%,” the DGCA said in a revised order on Tuesday evening.
Will the IndiGo CEO be sacked?
Speaking to TOI, Ram Mohan Naidu also indicated that IndiGo CEO Pieter Elbers may be sacked if need be.
“If it comes to that, definitely I will do it. I will charge them with all the penalties that are there. Definitely, I will look into all of those aspects,” he said.
“Criminal liability, whatever is there within the act and rules, everything will be taken, keeping into account the distress that has been faced by the passengers,” he added.
IndiGo share price today
Shares of InterGlobe Aviation, IndiGo's parent company, opened slightly higher at ₹5,012 on Wednesday on the BSE, compared to Tuesday's close of ₹4,963.40 apiece.
The stock, however, plunged to ₹4,853 afterwards as the effect of the DGCA order took hold. Overall, the stock has lost around 20% of its value over the past nine days since the crisis began.
