IndiGo FDTL Crisis: Analysts Split, DGCA Cuts, Airline Stabilizes

• IndiGo faced mass flight cancellations due to new Flight Duty Time Limitation (FDTL) regulations and pilot shortages, peaking around December 5.
• Analysts had mixed reactions: Moody's and JM Financial cited planning failures and negative impacts, while Jefferies and UBS maintained 'Buy' ratings despite cost concerns.
• The Directorate General of Civil Aviation (DGCA) issued a show-cause notice and ordered IndiGo to cut its winter schedule by 5%.
• IndiGo has stabilized operations, refunded Rs 827 crore, and its CEO apologized for the disruptions, which stranded thousands.

Why It Matters: IndiGo's crisis reveals how regulatory changes can disrupt major airlines and passenger plans.