The recent crisis involving IndiGo has exposed deep structural problems in India’s aviation sector.
What unfolded early this year was not merely an operational lapse or a temporary disruption, but a reflection of the power imbalance in a high demand aviation market with two dominant players.
Sixty percent of India’s domestic market share is held by IndiGo; out of nearly 900 domestic routes, IndiGo is the only carrier on 514 routes.
Together with Air India, the two carriers control a staggering 86% of the market.
By itself, high market concentration is not proof of monopoly. But it does create grounds for business practices that may fall under the Abuse of Dominant Position clause in India’s Competition Act, 2002.
For instance, in the recent crisis, it created a situation where the airline made decisions that severely inconvenienced passengers and compromised their welfare – flight cancellations and subsequent charging of exorbitant prices – without worrying that it would lose customers.
The Competition Commission of India has decided to investigate IndiGo under this clause.
The immediate reason for the crisis lay in the airline’s non-adherence to the Flight Duty Time Limit regulations, announced early January. These guidelines were designed to ensure safety by preventing pilot fatigue, a critical concern in aviation worldwide.
Airlines such as IndiGo had enough time to prepare for the transition, adjust crew schedules,…
Source: IndiGo disruption reflects the crisis in India’s aviation sector
