Govt mulls taking 5% of IndiGo flights, may hand routes to rival airlines

New Delhi: IndiGo could see a 5% reduction in its flight schedule, with nearly 110 daily services poised to be shifted to rival carriers as the government readies tough measures in response to the mass cancellations reported since December 2.

Officials have indicated that additional phased cuts are on the table if the disruptions persist, as public frustration mounts over what has become one of India’s most severe aviation meltdowns, according to a Times of India report.

Government authorities and the Directorate General of Civil Aviation (DGCA) are due to meet IndiGo chief executive Pieter Elbers on Tuesday to examine the carrier’s recent failures, as per media reports. IndiGo had been granted an especially large allocation for the current winter schedule owing to its extensive fleet and market dominance.

Civil Aviation Minister K Ram Mohan Naidu conducted a detailed review with senior officials late on Monday, December 8, after a full day of assessing the extent of the crisis. As part of the ongoing inquiry, deputy secretaries from the ministry will on Tuesday travel to airports nationwide to assess the situation directly on the ground. A comprehensive review involving all airlines has also been scheduled to gauge overall operational readiness across the sector.

However, in light of the recent turmoil, officials now intend to reduce those additional routes. These are expected to be redistributed among competing airlines following Tuesday’s round of high-level meetings with regulators, departments, and industry operators.

Aviation Ministry steps up airport inspections as disruption enters second week

The Ministry of Civil Aviation and the Directorate General of Civil Aviation (DGCA) have been monitoring conditions at airports nationwide in real time since December 3, following what officials describe as “extraordinary circumstances” triggered by major disruptions to IndiGo’s operations.

According to a statement from the office of Union Minister Ram Mohan Naidu Kinarapu, a high-level review involving senior officials was convened to assess the extent of the crisis. All top ministry officials have since been instructed to visit airports across the country to inspect airline operations and evaluate passenger-facing services firsthand.

Any shortcomings identified, including issues raised directly by travellers, are to be addressed and rectified without delay, the ministry said.

Indigo claims refund and baggage return on track

IndiGo Airlines said on Monday that it has so far processed refunds totalling ₹827 crore for thousands of affected passengers, with remaining refunds for cancellations up to 15 December 2025 currently under way.

In a statement, the airline reported that more than 4,500 misplaced bags had been returned to their owners and that the remainder would be delivered within the next 36 hours. IndiGo added that it has been assisting over 200,000 customers each day across multiple communication channels.

On Monday, IndiGo also submitted its formal response to the DGCA’s show-cause notice. The airline said it was “profusely apologetic” for last week’s nationwide disruption, blaming the chaos on an “unfortunate and unforeseeable confluence” of operational challenges.

Monopoly addressed in the Rajya Sabha; more carriers demanded

Addressing the Rajya Sabha on Monday, Civil Aviation Minister Ram Mohan Naidu Kinjarapu said the difficulties faced by IndiGo passengers stemmed from failures in the airline’s internal crew rostering and operational planning, rather than from the Aircraft Maintenance and Scheduling System (AMSS). He noted that extensive consultations had been held with all stakeholders regarding Flight Duty Time Limitations (FDTL) guidelines and stressed that safety “will not be compromised”. He also pointed to robust Civil Aviation Requirements (CARs) designed to protect passengers affected by delays and cancellations.

The Aviation Minister Naidu told the Rajya Sabha that India’s rapidly expanding aviation market now requires at least five major carriers to meet rising capacity and demand, adding that the government is actively working to encourage more players to enter the sector.

Former Union minister and Congress leader Prithviraj Chavan, however, warned that growing market concentration poses a “serious threat” to the economy and to passenger interests. He argued that crisis-hit IndiGo should be divided into two separate companies to restore fair competition. Chavan pointed out that India’s skies are currently dominated by just two major groups — IndiGo, with roughly 65 per cent of the domestic market, and the Tata Group’s Air India and AIX, which together hold nearly 30 per cent.

IndiGo shares plummet a week into crisis

Shares of InterGlobe Aviation, IndiGo’s parent company, tumbled sharply on Monday as the airline’s operational crisis stretched into its seventh day. The stock sank 8.62 per cent to ₹4,907.50 on the National Stock Exchange, erasing ₹17,884.76 crore from the company’s market capitalisation. On the BSE, the share price fell 8.28 per cent to close at ₹4,926.55.

Analysts noted that while IndiGo’s operating model delivers cost efficiencies in stable periods, it has failed to demonstrate sufficient resilience in the face of regulatory changes, contributing to the cancellation of roughly 1,600 flights on December 5 alone, as per reports.

The carrier’s on-time performance fell sharply to 68 per cent in November, down from 84 per cent in October, alongside more than 1,200 cancellations during the month.

IndiGo, however, maintained on Monday that it had now stabilised its schedules. “Today (8 December), we are set to operate over 1,800 flights, serving all our stations,” the airline said. “We have optimised our operations and reduced cancellations, which are being communicated to customers in advance.”

The airline added that on-time performance had risen to around 90 per cent from roughly 75 per cent.

(With agency Inputs)