IndiGo fiasco: ICSI flags governance lapses; CEO says airline ‘back on its feet’
The Institute of Company Secretaries of India (ICSI), the apex body of company secretaries with over 78,000 members, has publicly addressed recent management lapses at the country’s largest airline, IndiGo.
On Tuesday, the institute advocated for robust governance frameworks that emphasize proactive risk detection, timely corrective action and open communication channels.
In a statement, ICSI flagged the “recent management failure”. indigo event.”
This public airing of corporate governance issues at a particular company is a rare move for ICSI.
The airline has faced major operational turmoil recently, leading to hundreds of flight cancellations and severe delays last week, but the situation is reportedly now stabilising.
The main reason for these disruptions is the lack of adequate planning in the implementation of new flight duty regulations.
ICSI President Dhananjay Shukla said: indigo The incident serves as an important reminder to corporate organizations and professionals alike about the need for sound governance. He noted that such frameworks are vital for creating and preserving shareholder value, as well as maintaining public trust.
The need for deeper responsibility
Following the government’s strong view on the IndiGo situation, ICSI emphasized the urgent need for improved corporate governance practices across India Inc.
The institute emphasized the importance of deeper accountability at the board level, arguing that sound governance is not just about compliance but also ensures corporate preparedness, accountability and effective crisis response.
Reiterating the vital role of independent boards, effective risk management and careful stakeholder oversight, ICSI also called on companies to align board processes in the interests of all stakeholders and “enable proactive risk identification, timely response and transparent communication.”
ICSI Secretary Asish Mohan advised that since corporate governance is an ongoing responsibility, companies should critically review their existing structures and processes to better protect their stakeholders and ensure long-term operational sustainability.
CEO says IndiGo operations are stable
IndiGo’s parent company, InterGlobe Aviation, has set up a crisis management group, overseen by the board, to monitor developments.
A statement released on Tuesday confirmed the board was committed to resolving the difficulties faced by its customers and ensuring all affected passengers received refunds.
In his latest video message, IndiGo CEO Peter Elbers said thousands of customers whose flights were canceled or postponed have received full refunds and the process is continuing on a daily basis.
“IndiGo is back on its feet and our operations are stable. We disappointed you when there was a major operational disruption, and we apologize for that,” Elbers said in a video message on Tuesday.
“We had previously stated normalization between December 10-15. Today, I can confirm that our operations have become completely stable as of December 9, which means that the flights reflected on our website are planned to be operated with an adjusted network.” he added.
But Elbers remained tight-lipped about compensation for customers whose flights were canceled or significantly delayed at the last minute.
