Capacity and prices
I don't think the government is offering any bailout and any package they offer cannot be only to KF. The losses of most airlines that declare their results are massive and not only restricted to KF. Indigo is not obligated to declare it's results so any information on them is speculative.
The game has become about cash flow and not profitability. Jet has a $1 billion loss more than KF but is maintaining cash flow, but for how long can one spin the web.
With KF being disrupted the fares are spiraling upwards across the board. It is in the governments best interest to relook at ATF taxation which in some states is over 35% and some landing fees and charges to reduce operating costs across the board. In addition they need to ensure that bottom predatory pricing is controlled for the next 3 years to avoid this situation that IMHO was the brain child of the gopi man on weed and is the root cause of the issue.
KF has spiraled faster than the others because he blew his wad on Deccan instead of letting him crash and burn (not literally) and his fickle mind of low cost/fine dine/low cost/fine dine cattle class / presidential suite.
To top it all his son with 50 days of experience is actually a pointless exercise in dynasty power.
It is true his ego is the only thing keeping it afloat, but even the fat man will need to bite humble pie. He should go in for a restructuring exercise that includes professionals only, stick his nose out and involve all stake holders by which I mean, employees, banks, equipment manufacturers and the airports.
Most importantly stick to one concept and do not change it. I have no idea if I am going to be flying third, second or first class or maybe even standing up at this stage with his concept of First, Regular or Red!!!!!