Moody's Flags IndiGo's 'Credit Negative' Chaos, Citing Planning Lapses

• Moody's labeled IndiGo's widespread flight disruptions as "credit negative," citing potential revenue loss, refund costs, and regulatory penalties.
• The disruptions stem from IndiGo's failure to prepare for new Flight Duty Time Limitation (FDTL) rules, which were communicated over a year in advance.
• IndiGo cancelled over 1,600 flights on December 5 and more than 1,200 in November, with operations still not fully restored.
• The Civil Aviation Minister blamed IndiGo's internal planning systems for the crisis, while the DGCA issued show-cause notices to top executives.
• The airline has refunded Rs 827 crore for nearly 1 million PNRs cancelled between November 21 and December 7, highlighting the scale of the fallout.

Why It Matters: IndiGo's operational meltdown warns of travel disruptions from airline mismanagement.