IndiGo Faces Downgrades, Governance Scrutiny Amid FDTL Meltdown

• IndiGo's December operational breakdown led to analyst downgrades and wider target price divergence, signaling growing governance concerns.
• Moody's flagged IndiGo's FDTL norm mishandling as a "significant lapse" and credit negative, citing potential financial damage and leadership continuity issues.
• Proxy firm SES raised governance red flags, questioning the board's FDTL compliance and risk management, while aviation experts warn of pilot trust issues affecting fleet expansion.
• DGCA granted a temporary FDTL exemption until Feb 2026 but mandated strict reporting and a compliance roadmap, seen as a "probation period."
• IndiGo's market dominance (60-65%) and recent disruptions could trigger policy debate over over-reliance on a single carrier, impacting industry-wide costs.

Why It Matters: IndiGo's operational issues could affect air travel reliability, costs, and investment decisions.