IndiGo Airlines Crisis 2025-A Critical Analysis of India's Largest Aviation Disruption

Author(s)	Prof. Dr. Sanjay Kumar
Country	India
Abstract	This research paper provides a comprehensive, multi-dimensional analysis of the December 2025 operational crisis at IndiGo Airlines, India's largest & most dominant domestic carrier, commanding an unprecedented 65.6% market share. The crisis represents a watershed moment in Indian aviation history, resulting in over 4,500 flight cancellations within ten days, stranding approximately 500,000 passengers across 78 domestic and 32 international destinations, and destroying USD 4.5 billion in market capitalisation—equivalent to 17% of the airline's pre-crisis valuation. Customer compensation liabilities exceeded INR 500 crores, while cascading operational disruptions created national transportation emergencies requiring government intervention & competitive reallocation of critical routes.
Keywords	Examination of India's aviation landscape, market dynamics, and IndiGo's operational model, Quantification of economic losses, market impact, and operational disruption metrics, Synthesis of findings into actionable insights for airlines, regulators, and policymakers...
Published In	Volume 7, Issue 6, November-December 2025
Published On	2025-12-23
DOI	https://doi.org/10.36948/ijfmr.2025.v07i06.64402

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