Moody's: Indigo faces big losses, penalties for FDTL rule violations

• Moody's warns Indigo could face significant losses due to its current crisis, citing potential revenue loss, refunds, and possible DGCA penalties.
• The crisis stems from Indigo's failure to comply with new Flight Duty Time Limitation (FDTL) rules, despite prior notification.
• Indigo has cancelled thousands of flights since December 2nd, causing major passenger disruption and leading to show-cause notices from DGCA.
• The FDTL rules aim to enhance safety and reduce pilot fatigue, which Indigo's operating model failed to accommodate.
• InterGlobe Aviation's shares have dropped over 15% since December 1st due to the ongoing operational crisis.

Why It Matters: Indigo's regulatory failure highlights severe financial and operational risks for airlines.