The observations, made in the report by the Parliamentary Standing Committee on Transport, Tourism and Culture, follow a video that went viral last year showing IndiGo ground staff allegedly assaulting a passenger.
"The Committee observes that the problem affecting the airlines are not personal, it is institutional. An institution like IndiGo has to develop a consumer-friendly approach in dealing with their passengers," said the report tabled in Rajya Sabha.
The panel emphasised that the "arrogant behaviour of employees should stop".
Responding to media queries regarding the panel's observations, Minister for Civil Aviation Ashok Gajapathi Raju merely said, "everyone should behave properly".
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A member of the committee, while making a general observation about various airlines, said, "the attitude of airline staff is as if they are on some high ground and the passengers are like herds, as if passengers are uneducated and illiterate ones who do not know anything, who have not flown before."
A scuffle took place between a passenger and an IndiGo ground staff in October on the Delhi airport tarmac.
The government has told Parliament that the regulatory body Directorate General of Civil Aviation came to know of the incident only after almost a month through the social media and ordered an inquiry.
In a letter to the Ministry of Civil Aviation, IndiGo had apologised for the incident.