IndiGo's Ultra-Lean Model Triggers Historic Flight Chaos in India

• IndiGo faced massive flight cancellations (over 1,000 on Dec 5) due to a tech glitch, new pilot rest rules, and other factors.
• The disruption stranded thousands of passengers, prompting government intervention to suspend new pilot rest rules and cap fares.
• IndiGo's highly optimized, lean operational model, which lacked redundancy, was identified as a key reason for the cascading failures.
• The crisis threatens IndiGo's market position and expansion plans, leading to a 9% stock drop and calls for industry changes.
• India's aviation regulator demanded an explanation from IndiGo CEO Pieter Elbers for "significant lapses in planning, oversight, and resource management."

Why It Matters: IndiGo's crisis exposes risks of hyper-efficiency and market concentration in aviation.