INDIGO CRISIS: PM MODI’S DECISIVE INTERVENTION SAVED THE SITUATION: Dr CHANDRA

Revealing the inner mechanics of the recent IndiGo debacle, Dr Jagdeesh Chandra said the sudden withdrawal of hundreds of IndiGo flights without notice created a national-level crisis that caused widespread public distress, requiring direct intervention from Prime Minister Narendra Modi. He stressed that during severe crises, people bypass institutional hierarchies and look to Modi for decisive action, which he delivered by assigning Home Minister Amit Shah to oversee damage control. Dr Chandra said the suspension of problematic regulations, strict compliance measures, refunds, fare caps, and a high-level inquiry helped restore normalcy. He added that while the government has extensive powers, including acting against airline management in exceptional cases, it is proceeding cautiously. Dr Chandra stressed that sustainable fare control remains complex without compensating airlines. Excerpts… (Part-I)

• The headline of today’s JC Show is “IndiGo Crisis: How did the government finally carry out damage control?” Would you like to explain?
  Dr Jagdeesh Chandra: Of course. IndiGo created a major mess, almost a national-level disaster, by suddenly withdrawing hundreds of flights without any prior notice. However, with the timely intervention of the Prime Minister, the situation was brought under control. Considering the mood of the nation and acting as a concerned and sensitive leader, Prime Minister Narendra Modi spoke to his trusted Home Minister Amit Shah and asked him to take up the issue with the Civil Aviation Minister and oversee all relief operations. The results are visible. All IndiGo operations are now back to normal, with more than 2,000 flights operating daily. In this way, the entire damage control exercise has been completed, and the nation has expressed its gratitude to Narendra Modi for this intervention.
• When the situation went completely out of control, the Prime Minister ultimately had to intervene. On this occasion, what exactly did Narendra Modi say?
  When situations go out of control or when there is a severe crisis, the people of the country bypass the entire hierarchy and look directly towards the top, towards Narendra Modi. That is exactly what happened in this case. Narendra Modi intervened and spoke very clearly and independently. He said that rules and Acts have their own place, but laws should not harass the public. Laws should provide relief and convenience to people, not trouble or suffering. He gave clear instructions that the situation must be immediately corrected and ensured that no government law causes pain or hardship to the public. In this way, he entered the scenario, did a commendable job, and the nation expresses its gratitude to the Prime Minister.
• Do you not feel that whenever a major crisis arises, people look only towards Narendra Modi? How do you define this phenomenon?
  This is the people’s trust and confidence in the leadership of Narendra Modi. That is why people say, “If Modi is there, everything is possible,” and during crises, people also say, “I am here.” Just two days ago, at a function of BJP MPs, he said that this labourer is standing behind you and you should move forward. This is a very significant statement. The entire country watches him, there is a deep sense of trust in him, and therefore people have expectations from him. And he delivers consistently. As he does not hesitate to take extra responsibility whenever required, this explains Narendra Modi’s popularity and charisma in the country.
• What was the role of Home Minister Amit Shah in this entire damage control exercise?
  You know, when a situation goes out of control in any case, the Prime Minister entrusts the task to Amit Shah and feels assured. The same thing happened in this case. He is a born ‘troubleshooter’ for the PM. As soon as Amit Shah stepped in, he spoke to Minister Naidu. A strategy was prepared, a monitoring system was put in place, and within three to four days the entire situation came under control. His monitoring and actionoriented planning is almost instinctive. Amit Shah delivered in this case as well, and the entire nation witnessed it. Although, he later remained quietly in the background while Naidu was in the forefront, all directions and supervision, under the instructions of Narendra Modi, were carried out at Amit Shah’s level. The damage control operation was conducted in a highly effective and successful manner.
• After Narendra Modi’s intervention, Civil Aviation Minister R M Naidu issued 12-point guidelines. What was their core essence, and to what extent has IndiGo complied with them?
  As far as compliance is concerned, this time the government was very effective. There was strong pressure from the Prime Minister at the top, extending to every Minister and official. Even IndiGo was very cautious about compliance, ensuring that mistakes were not repeated. The most important aspect was the decision to suspend the law that was causing problems, while retaining safety rules. This suspension was ordered until February 10, which provided immediate relief. It was also directed that passengers be given immediate refunds, that lost luggage be returned, that stranded passengers be transported at government or airline expense, and that soaring ticket prices be capped. Additionally, a 10% cut in IndiGo’s share was ordered along with a highlevel inquiry. Overall, the minister’s role was effective, under the supervision of Narendra Modi and Amit Shah.
• To control soaring airfares of all airlines including IndiGo, the government has fixed maximum fare limits. Do you think this can actually be implemented?
  It is very difficult. The Minister himself has said that such rates cannot be enforced for an entire year. It may only be a temporary solution or arrangement. He also pointed out that seasonal changes and demand-supply situations exist, and fares cannot remain the same throughout the year. He further stated that deregulation is also essential for development. If fare caps or price de-regulation are not allowed, it will affect the viability of airlines. Overall, the Minister took a pragmatic approach and sorted out the issue. He also clarified that this is not a one-way solution and that both sides must work together. Fare capping often turns out to be an illusion, and airlines have mastered this art. Practically, it was concluded that this can only be a temporary arrangement with regular monitoring by the ministry, as a fixed rate cannot be set for an entire year. 
• Do you not think that, like subsidies given to agriculture and farmers, airlines should also be given a major subsidy package to control ticket prices?
  It is a brilliant idea. If the government considers it, you can see how much money is spent under schemes like the farmer support programmes. It is a good experiment. Similarly, railways provide about 43 percent subsidy on tickets for passenger convenience. On the same pattern, if the government, in overall public interest, provides a compensation package of around one lakh crore rupees to airlines, there is no harm. Just as the government has earned appreciation through income tax amendments, GST reforms, and upcoming customs reforms, providing a compensation package for airlines would directly benefit middle-class passengers. This would allow a fare cap to be fixed and regularly enforced on specific routes. The tragedy is that whenever fare caps are imposed, airlines treat the maximum cap as the minimum fare. This makes the issue highly complex, and without some form of relief or compensation to airlines, effective fare capping to benefit the common person appears unlikely.
• The Aviation Minister has said that the government will take strict action against IndiGo if negligence is proven. What options does the government have?
  The government has many options. The first option is to cancel or suspend IndiGo’s license, though this is neither practical nor feasible. The second option is to file an FIR, which could also lead to arrests. The third option is to impose a heavy fine, reportedly around Rs 500 cr. Another option is the removal of the CEO or changes to the Board of Directors. While the government has extensive powers, it is acting with patience and restraint to avoid any counter-reaction that could further disrupt services. IndiGo’s bargaining power and alleged monopolistic tendencies are under examination. Several options remain open, but the government is proceeding cautiously, with the criminal aspect still under inquiry and not yet invoked.
• How do you view DGCA’s decision to terminate four flight operation inspectors in the IndiGo case? Does the Civil Aviation Ministry or DGCA have the authority to remove the CEO of a corporate company?
  It is a welcome move, certainly a welcome move. Four people have been suspended, and a clear message has gone out to the industry that the government is serious and concerned. This move has sent a positive signal and strengthened DGCA’s credibility. The authority to remove a CEO, however, generally rests with the Board of Directors. However, in exceptional circumstances, the government can revoke laws or issue orders, suspend individuals, make arrests, and lodge FIRs. Its powers are wide, including curtailing up to 50% of seats, though there is no explicit provision for directly removing a CEO. While this is rare, in cases of unprecedented crimes, exercising such extraordinary powers would be well within the government’s rights.
• Like Chandrababu Naidu, another key NDA ally, JDU, has also demanded strict and immediate action against IndiGo for daylight robbery. How do you see this development?
  It has no merit or relevance. K C Tyagi is a very senior and experienced person. At this stage of his life, he reacted emotionally because his daughter had to pay Rs 41,000 for a Delhi–Mumbai ticket. In his frustration, he termed it as loot. Additionally, Rajya Sabha elections are approaching, and JDU is getting two seats. There appears to be an attempt to remain in the limelight. Overall, relations between Nitish Kumar and Chandrababu Naidu are very cordial. When Nitish Kumar took oath in Patna, Chandrababu Naidu’s elder son was present to congratulate him. All is well between the two parties, and no undue importance should be attached to this minor incident.
• How do you assess the performance of Civil Aviation Minister R M Naidu during the entire IndiGo crisis?
  His performance has been very impressive. He is a competent person with clarity and vision. He showed courage and conviction by openly admitting that this was his failure, taking full responsibility, and apologising to the nation. That is a very big thing. During the press conference, he did not appear nervous at all. Many media channels grilled him, but he remained calm and answered every question that was asked. He clearly stated that he would not run away from questions. He demonstrated leadership there. Some people from Chandrababu Naidu’s party later said that the government did not support the young Minister as much as it should have and that no senior BJP leader came out in his support. I do not agree with this. The Prime Minister himself intervened and assigned Amit Shah. There cannot be a bigger show of support or involvement than that. Overall, the Minister has performed well in this entire exercise.
• How do you view the chaotic situation witnessed at airports between 1 December and 5 December?
  It was extremely unfortunate and very sensitive. One newspaper described it aptly, saying there was trouble in the skies and screams of pain on the ground. For instance, there was a young woman whose husband had passed away. She had to travel to Chennai and was sitting at Delhi airport for hours with the body. It was an extremely sensitive and distressing situation. In another case, the groom reached the wedding venue, but the bride could not. Weddings were stalled, exhibitions were halted, and hotel and restaurant bookings were cancelled. An atmosphere of anarchy prevailed. Many people were reminded of the COVID period. This was the first time in the country that due to mismanagement by a single airline, the entire nation had to suffer such pain and distress.
• Is it true that during this chaos, IndiGo management left junior airport staff to face angry passengers and answer their questions?
  You are absolutely correct. They virtually abandoned their lower-level staff and left them shattered and alone. Young men women aged 20 to 25 years, earning salaries of Rs 25,000 to Rs 30,000, were left to face aggressive crowds. In some instances, men were seen pushing towards female staff members to demand answers. There were no safety arrangements, and no senior official stepped in, leaving young, inexperienced staff to handle the crisis—an act deemed criminal and a moment of shame for the airline.

TO BE CONTINUED...

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