Four of India's five national airlines have formally approached the government seeking relief from new pilot rest regulations that took effect on November 1, 2025. The carriers, which collectively handle around 95% of domestic passenger traffic, argue that the revised Flight Duty Time Limitations (FDTL) norms may prove unsustainable in the long run. Government officials confirmed that discussions are ongoing regarding potential relaxations to the newly implemented rules.

Regulatory Changes and Industry Impact

The revised FDTL norms represent a significant tightening of pilot working conditions, implemented following prolonged litigation led by pilots seeking stricter limits on working hours and night duties for passenger safety. The new regulations introduce several key changes that have substantially altered airline operations.

IndiGo Disruptions and Penalties

The implementation challenges became evident when IndiGo experienced widespread operational issues between December 3 and 5, 2025. A subsequent government inquiry revealed that the airline had failed to adequately address planning gaps and maintained minimal recovery margins, despite having nearly two years to prepare for the new regulations. The disruptions affected nearly 3 lakh passengers, highlighting the operational complexities of transitioning to the stricter norms.

IndiGo received a temporary exemption from FDTL requirements until February 10, though aviation experts flagged this as a potential safety risk. The airline faced significant financial penalties for its operational failures:

Industry-Wide Concerns

According to government officials, the matter was raised during a parliamentary standing committee meeting on December 17, 2025, indicating the issue's significance at the policy level. An airline executive confirmed that all major carriers except SpiceJet and Alliance Air are participating in discussions with the government regarding potential modifications to the regulations.

Industry representatives cite multiple operational pressures that compound the challenges posed by the new norms. These include airfare caps, geopolitical uncertainties, and the ongoing closure of Pakistan's airspace, all of which affect route planning and operational flexibility.

Cost and Operational Implications

Airline executives emphasize that compliance with the stricter FDTL norms necessitates hiring additional pilots, significantly increasing operational costs. The reduced monthly flight time limits and extended rest requirements mean airlines must maintain larger pilot pools to operate the same number of flights, directly impacting profitability in an already competitive market.

Government officials indicate that while airlines have formally requested relaxations, no decision has been made regarding modifications to the second phase of FDTL rules. The ongoing discussions reflect the challenge of balancing safety requirements with operational viability in India's rapidly growing aviation sector.

New airlines seeking to enter India's domestic aviation market face significant operational delays spanning several years due to persistent aircraft shortages and ongoing supply chain challenges, according to a former Boeing executive. The warning comes as the aviation industry grapples with unprecedented demand amid limited manufacturing capacity.

Aircraft Availability Crisis

Dinesh Keskar, former senior vice president for sales at Boeing Co, addressed the supply constraints during a Leadership Talk at the Indian Institute of Management (IIM) Nagpur. He emphasized that despite government approvals for new airline companies, actual operations remain distant due to aircraft unavailability.

The government recently granted No Objection Certificates (NOC) to two new airlines - Al Hind Air and FlyExpress - following massive operational disruptions at IndiGo. However, these approvals may not translate to immediate market entry given the supply constraints.

Domestic Manufacturing Challenges

While India experiences rapidly increasing air traveler numbers, domestic aircraft manufacturing remains unfeasible according to Keskar. The primary obstacle centers on skilled manpower shortages rather than infrastructure or regulatory barriers.

"Government approvals and infrastructure alone are not enough, the shortage of skilled manpower remains the biggest challenge," Keskar explained. He noted that while land, electricity, and water resources may be available, highly-skilled engineers and technicians are difficult to find.

This skilled labor constraint explains why Boeing operates only two aircraft manufacturing facilities globally, both located in the United States.

Market Concentration Concerns

Keskar expressed concern about the growing dominance of a single company in India's aviation market, referencing IndiGo's recent operational crisis. "The concerned airline controls a major part of India's airline market...whenever a monopoly develops in any sector, it inevitably creates problems," he stated.

Industry Outlook and Innovations

Regarding external factors, Keskar noted that new tariffs imposed by the Trump administration will have limited impact on the global aircraft industry, as aerospace parts remain exempt from tariffs. He expects these issues to resolve soon, reducing concerns for the aviation sector worldwide.

Boeing continues developing innovative solutions, including work on a 12-seater electric aircraft. Keskar described this as a fascinating concept that could become a game changer for the aviation industry, though implementation will require significant time.

During the session, Keskar also shared insights on global trade dynamics, emerging aviation technologies, and electric aircraft development. He reflected on his personal journey from childhood in Amravati through his engineering education at Visvesvaraya National Institute of Technology (VNIT) Nagpur, highlighting his connection to the Vidarbha region.