In this Special Report, former AirAsia India CFO Vijay Gopalan discusses the Ministry of Civil Aviation’s decision to order a 10% cut in IndiGo’s flight operations following a week of mass cancellations. Speaking to Rajdeep Sardesai, Gopalan argues that the tough measures were ‘justified’ as the disruption brought Indian civil aviation to a ‘grinding halt’. He warns that while IndiGo may seem dominant, ‘nobody is too big to fail’, drawing parallels to Jet Airways and Kingfisher. Gopalan highlights that the 10% cut during the peak December quarter will significantly impact IndiGo’s financials. He describes the Indian aviation sector as a ‘graveyard’ due to structural issues like high fuel taxes and dollar-denominated costs, urging for reforms beyond just penalties.
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