• IndiGo ordered to cut 10% of flights after 3,000 cancellations last week.
• Flight reductions result from poor pilot roster planning and operational mismanagement.
• Ministry aims to stabilize operations and reduce passenger disruptions.
• CEO expresses commitment to restoring normal operations amid criticism.
• Regulatory action reveals challenges in India's aviation duopoly.

IndiGo, India's largest airline, has been ordered to reduce its flight schedule by 10% in response to a crisis that saw it cancel over 3,000 flights last week. The government's decision was prompted by mass cancellations attributed to poor pilot roster planning, which left thousands of passengers stranded. The civil aviation ministry emphasized the need for these reductions to stabilize operations, stating, "The Ministry considers it necessary to curtail the overall IndiGo routes, which will help in stabilising the airline’s operations and lead to reduced cancellations," according to Channel News Asia and BBC.

The initial order for a 5% cut was lifted to 10% after intensified scrutiny of IndiGo's operational capabilities. According to the Directorate General of Civil Aviation (DGCA), IndiGo had "not demonstrated an ability to operate" its approved flight schedule efficiently. Reports indicate that the airline had to submit a revised flight plan amid these challenges, highlighting the ongoing operational instability since new pilot duty regulations were introduced on November 1, which increased required rest periods and reduced flying hours for pilots, as noted by Indiatimes and SCMP.

Following the cancellation crisis, IndiGo remedied some operations, managing to stabilize the services to around 1,800 flights daily. However, insiders suggest that cutting capacity risks exacerbating the aviation crisis in India as other airlines lack the capacity to absorb these cancelled routes. Analysts warn that this situation might lead to fewer choices and potentially higher fares for consumers, emphasizing that “the government’s move may benefit passengers in the long term but for now they might have to pay more,” as noted by BBC.

Amid ongoing scrutiny, IndiGo's CEO Pieter Elbers was summoned to explain the company's crisis management strategies and was expected to address passenger complaints. In a note posted on social media, Elbers indicated that operations are “fully stabilized,” despite pressure from the aviation ministry and a declining share price, which has fallen 15% since early December, reflecting investor concerns about rising operational costs and disruptions, according to Channel News Asia and Indiatimes.

This crisis underscores significant structural issues within India's aviation sector, primarily dominated by two carriers: IndiGo and Air India. Analysts suggest that the duopoly creates vulnerabilities as both airlines embark on rapid expansion without a sufficient buffer against regulatory changes and market pressures. Experts argue that while competition is necessary, easing market entry barriers for new players could serve to alleviate some of these systemic pressures, as highlighted by SCMP.