India’s biggest aviation disruption in December 2025 has turned the spotlight back on IndiGo Airlines, the carrier that controls over 60% of India’s domestic market. Led by low-profile billionaire Rahul Bhatia, IndiGo is now among the world’s busiest airlines, yet its story began with a failed family business.

A Comeback Built on Bankruptcy

In the 1980s, Kapil Bhatia’s travel agency, Delhi Express Travels, went bankrupt. Instead of quitting the aviation sector, he and his son launched InterGlobe Enterprises in 1989, starting with airline ticketing and ground handling.
Rahul Bhatia, an engineering graduate from the University of Waterloo, later identified India’s expanding middle-class demand and built a strict, low-cost aviation model.

Building IndiGo on Discipline, Not Luxury

In 2005, Bhatia partnered with Rakesh Gangwal (former CEO of US Airways). Their strategy was based on:

• Single aircraft type (Airbus A320 family)
• No free meals
• High aircraft utilisation
• On-time performance as a core brand value

They placed a record order of 100 Airbus A320s, launching IndiGo in 2006. Within three years, it became India’s fastest-growing airline.

IndiGo’s 2025 Crisis: A Critical Miscalculation

New DGCA pilot rest rules increased weekly off time and restricted night-time landings, exposing IndiGo’s manpower shortage. The airline admitted misjudging pilot needs, leading to:

• Over 1,000 flight cancellations in a week
• Fare spikes and stranded passengers across India
• Government probe, refund mandate, and fare caps
• Possible penalties and accountability review for CEO Peter Elbers, ex-KLM chief

Who Controls IndiGo Today?

Following a governance dispute, Rakesh Gangwal exited IndiGo, selling most of his stake. The Bhatia family now controls about 36% through InterGlobe. The board is dominated by aviation experts

A Billion-Dollar Fortune Built by Holding, Not Selling

Rahul Bhatia’s wealth stands at $8.1 billion (2025), driven almost entirely by IndiGo. He rarely sells shares; family entities received ₹1,600 crore in dividends in 2025 alone.

Current Challenges Facing IndiGo

• Pilot Shortage: New DGCA rest rules expose inadequate staffing.
• Strategic Miscalculation: IndiGo publicly admitted underestimating crew requirements.
• Passenger Impact: Over 1,000 cancellations, ticket inflation, and nationwide delays.
• Regulatory Heat: Government considering penalties and stricter compliance norms.
• Cost Pressure Ahead: Pilot hiring, training, global wage competitiveness to increase expenses.

IndiGo’s Next Flight Path

IndiGo’s journey from a bankrupt travel agency to the world’s busiest single-fleet airline shows how disciplined strategy, low-cost operations and strong promoter control reshaped Indian aviation. But the 2025 pilot shortage crisis, DGCA scrutiny and flight cancellations mark a turning point.

IndiGo can protect its market leadership only by investing in long-term pilot capacity, strengthening compliance, and prioritising operational safety over rapid expansion. The airline that transformed affordable flying in India must now prove it can scale responsibly under tougher regulation and rising competition.

The future of IndiGo — and India’s aviation market — will be defined not by how fast it grows, but by how safely and sustainably it flies.