IndiGo’s operational meltdown stretched into the seventh straight day on Monday, with nearly 500 flights cancelled, fresh delays reported across major airports and the Civil Aviation Ministry disclosing refunds running into hundreds of crores as stranded passengers scrambled for alternatives and rival airlines stepped in to absorb the shock.

The government plans to take strict action against IndiGo to “set an example” for airlines that violate regulations, the Civil Aviation Minister said.

“We are not taking this situation lightly. We are doing an inquiry and will take very, very strict action... we will set an example for all the other airlines,” Civil Aviation Minister Ram Mohan Naidu said in reply to questions in the Rajya Sabha.

India’s largest airline has been grappling with mass c

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