Pieter Elbers CEO IndiGo and Bjørn Tore Larsen CEO and founder Norse Atlantic Airways
Pieter Elbers, the Chief Executive Officer of IndiGo, the Delhi-based low-cost airline, has resigned with immediate effect, it announced on Tuesday evening Indian time. Elbers was the CEO of Dutch airline KLM before joining the Indian carrier.
The airline and Indian promoter Rahul Bhatia will replace Elbers until a new CEO takes over.
In a letter posted on the Bombay Stock Exchange, Elbers said that he was resigning for “personal reasons”. Elbers took over the CEO position in September 2022.
While no reason was given for Elber’s sudden decision, many factors, including the cancellation of thousands of flights during the peak holiday season, a hefty fine for the cancellations, and a rap on the knuckles by the Competition Commission of India, probably sealed Elber’s fate.
The cancellations were due to the implementation of new Flight Duty Time Limitation rules for cockpit crew, which came into effect late last year. IndiGo was short of pilots, leading to flight disruptions between December 3 and December 5 last year. The disruptions affected over 300,000 passengers, with more than 2500 flights cancelled and over 1800 delayed during that period.
The cancellation led the Directorate General of Civil Aviation to impose a penalty of $24.2 million, or Rs 2.2 billion. and warned six officers, including Elbers. The DGCA is the Indian aviation regulator. This is the highest fine imposed by the Indian aviation regulator on any Indian airline.
Fine was laughed at by social media and pundits
Indian newspapers quoted unnamed bureaucrats as saying that the fine imposed on IndiGo was “peanuts”. The fine is estimated at just 0.31% of the Rs 72.63 billion net profit the airline recorded for the financial year ended March 31, 2025. The penalty is estimated to represent just three hours of revenue for the airline on a top line of Rs 750 billion.
The airline was also asked to deposit bank guarantees of Rs 0.5 billion, which will be refunded once it implements the operational corrections required by the Indian aviation watchdog, the Directorate General of Civil Aviation (DGCA). Later, the DGCA said that IndiGo had enough pilots to operate the approved schedule.
Competition Commission orders probe into flight cancellation by IndiGo
The Competition Commission of India ordered a detailed probe into what it called an alleged unfair trade practice by the airline. The CCI probe was ordered the same month the DGCA fined the airline $24.2 million.
The Commission said that the airline enjoyed “a position of dominance” in the airline business, noting that it operated exclusively on 330 routes, consistently had a market share of 60-61 percent, and had a much bigger fleet than its closest rival, Air India.
The order said “by cancelling thousands of flights constituting a significant portion of the scheduled capacity, IndiGo effectively withheld its services from the market, creating an artificial scarcity, limiting consumer access to air travel during peak demand season. “ Such a conduct by a dominant enterprise may be viewed as restricting the provision of service” the order said.
Elber’s decision comes weeks after there were rumours, since denied, that the Indian government wanted Indian CEOs to run Indian airlines
In February this year, CNBC TV 18 reported that the Ministry of Civil Aviation had conveyed to airline operators the need for Indian leadership at Indian carriers.
The television report added that the Ministry believes that airline leadership should reflect India’s growing aviation identity.
The Ministry of Civil Aviation, however, said it had not requested any such change in airline leadership in India.
Elbers leaves months before Campbell Wilson, a New Zealand national, is widely expected to step down as Air India’s Chief Executive Officer later this year.
Elbers changed the business model of a low-cost airline in India
It was during Elbers’ stewardship that IndiGo, a purely low-cost airline, decided to add a Stretch or business class. This was the first time in over a decade and a half that the airline, which was flying single-cabin aircraft, changed its cabin configuration. At the 2023 Paris Airshow, IndiGo placed a bumper order for 500 Airbus A320neo family aircraft.
During his tenure, the airline also wet-leased Boeing 787s from Norse Norwegian, which were largely used to operate flights to Europe. But within a short time of their inception, many of the flights were withdrawn, including those to Manchester and Copenhagen.
The ongoing crisis in the Gulf region probably added to Elbers’ woes due to a directive from the European Aviation Safety Agency prohibiting European airlines from operating in the war-torn region and the closure of Pakistan airspace to Indian aircraft. IndiGo could not operate the flights to Europe using its Norse aircraft. Under the lease agreement, the crew came from Norse. The Hindu newspaper reported that IndiGo flights to Europe had been grounded since February 28, when the conflict in the Middle East broke out.
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