IndiGo's $4.3B Crash: Pilot Rest Rules Expose Lean Staffing, Ground Flights

• IndiGo has slipped from its top global airline valuation position to fifth, with market cap dropping to $21 billion from an August peak.
• The decline followed nationwide disruptions in December 2025 due to new DGCA regulations on pilot rest, which IndiGo's lean staffing model couldn't accommodate.
• Thousands of flights were cancelled, stranding passengers and leading to public outrage, regulatory intervention, and fare caps.
• IndiGo lost approximately $4.3 billion in market value in one week, marking the largest share-price drop since CEO Pieter Elbers' appointment in 2022.
• The crisis exposed structural fragility in India's aviation sector due to IndiGo's dominance and reliance on lean manpower, raising concerns about overcentralization.

Why It Matters: IndiGo's crisis exposes fragility of India's aviation due to over-reliance on one carrier.