India orders IndiGo to slash flights as airline says operations ‘normalised’

India’s dominant carrier IndiGo has announced the stabilization of its operations following a severe disruption that resulted in over 3,000 flight cancellations last week. The crisis, attributed by company officials to inadequate pilot roster planning, stranded thousands of passengers nationwide.

In response to the operational breakdown, Indian aviation authorities have mandated a 10% reduction in IndiGo’s winter flight schedule—doubling the initially proposed cuts. This directive could lead to the cancellation of more than 200 daily flights. Federal Aviation Minister Ram Mohan Naidu stated that the ministry ‘deems it necessary to curtail the overall IndiGo routes’ to restore operational stability, while assuring that the airline ‘will continue to cover all its destinations as before.’

The airline, which commands over 60% of India’s domestic market with approximately 2,200 daily flights, has been ordered to submit its revised schedule to regulators by Wednesday. Additionally, the carrier must implement fare caps, expedite refund processes, and accelerate baggage handling for affected customers.

Aviation analysts warn that reducing IndiGo’s daily capacity by 10% could exacerbate India’s ongoing aviation crisis. Sanat Kaul, an industry analyst, noted that while the government’s intervention might benefit passengers long-term, immediate consequences could include heightened fares due to constrained capacity across competitors like Air India and SpiceJet, which lack surplus capacity.

The operational turmoil has triggered financial repercussions, with IndiGo’s shares declining 15% since December 1st. Investors express concerns over rising costs stemming from operational disruptions and increased crew expenses under new regulatory frameworks. Aviation expert Mark Martin anticipates further penalties for the carrier in coming days.

IndiGo CEO Peter Elbers, summoned by India’s aviation ministry on Tuesday to address crisis management and passenger complaint handling, asserted in a video message on social media platform X that operations had ‘fully stabilized.’