Amidst widespread flight disruptions, the Indian government is considering reducing IndiGo's flight schedule by 5% and redistributing those slots to other airlines. Civil Aviation Minister K Ram Mohan Naidu stated the government would curtail IndiGo's winter flight schedule and allocate them to other operators, following recent large-scale operational disruptions.

IndiGo, currently operating 2,200 flights, will face a reduction in its routes. The government's action comes in the wake of severe disruptions caused by flight cancellations, with approximately 110 daily flights potentially being reassigned. The decision is motivated by a desire to ensure that other carriers with the capacity to add flights can do so.

The ministry met with IndiGo management on December 1, before the crisis began, but the airline did not raise the issue. Minister Naidu emphasized that the government is taking the situation seriously and will take strict action as an example to other airlines if there is any non-compliance. He also made it clear that there would be no compromise on safety.

IndiGo has attributed the disruptions to a combination of factors, including new flight duty time limitation (FDTL) rules and changes related to the winter schedule. The Directorate General of Civil Aviation (DGCA) issued show-cause notices to IndiGo CEO Pieter Elbers and the airline's accountable manager, requesting a response within 24 hours regarding the disruptions. IndiGo acknowledged that its planning ahead of the new rules was "insufficient".

The ongoing crisis has significantly impacted passengers, with over 2,000 flights canceled since last week. From December 1 to 8, over 730,655 PNRs were cancelled, resulting in refunds worth ₹745 crore. The airline has delivered 6,000 of the 9,000 delayed passenger bags, with the remainder expected to be delivered soon. The disruptions have also affected IndiGo's stock value, with shares declining by 8% on Monday, leading to a 16% loss in total stock value since the crisis began and shaving off $4 billion from its market capitalization.

The government's intervention highlights concerns about IndiGo's dominant market share, which is nearly 66% in the Indian passenger airline sector. Shares of rival SpiceJet, one of the few listed major airlines in India, jumped 13.9% on Monday. Moody's Ratings has warned that IndiGo could face "significant financial damage".