India’s worst aviation disruption in years has triggered a broader debate on corporate concentration, after IndiGo — which controls nearly two-thirds of India’s domestic aviation market — cancelled over 3,000 flights in just a few days and was ordered by the government to slash 10% of its winter schedule.
The crisis erupted after IndiGo failed to adequately prepare for new roster norms that mandate longer rest hours for pilots, resulting in severe crew shortages. More than 400 flights were cancelled on Tuesday alone, with Delhi, Bengaluru and Mumbai the worst hit. The chaos has impacted over 500,000 passengers, led to massive luggage pile-ups, and forced the airline to issue more than ₹827 crore in refunds.
A Market Dominance Problem
IndiGo’s meltdown has amplified concerns about India’s aviation sector functioning as a near-duopoly, with IndiGo at 65.6% market share and the Air India Group at 25.7%.
Economists, industry experts and opposition leaders argue that such concentration creates systemic risks for consumers — from higher fares to service failures.
“There’s a huge consumer consequence to this, where the main people who suffer are ultimately the Indian consumers,” said Rohit Chandra, IIT Delhi.
The government has acknowledged the structural problem and called for new airlines to enter the market, but critics say stronger action is overdue.
Govt Cracks Down
As cancellations piled up, the Aviation Ministry escalated action on Tuesday:
DGCA first ordered a 5% schedule cut, later raised to 10%
Senior officers were deployed to 10 airports for oversight
Civil Aviation Minister briefed Parliament, stating “no airline will be permitted to cause hardship to passengers”
PM Modi instructed officials that “people shouldn’t be troubled”
IndiGo CEO Pieter Elbers said operations are “now stable”, with 1,800+ flights operated Tuesday and full compliance promised.
The Bigger Corporate Story
The aviation crisis feeds into a broader national discussion about India’s economic landscape, where a few conglomerates — Reliance, Adani, Tata, Aditya Birla, Bharti — dominate telecom, ports, airports, power, retail and more.
Former RBI Deputy Governor Viral Acharya estimates that just five conglomerates accounted for 18% of non-financial sector assets in 2021, up from 10% in 1991.
Aviation mirrors that pattern: a decade ago, nine airlines shared the market. Today, consolidation has wiped out Jet Airways, Kingfisher, and GoAir, leaving IndiGo and Air India at the top.
What Comes Next
With 800+ luggage pieces still pending, continuing schedule corrections, and passenger grievances rising, IndiGo faces growing scrutiny. The crisis may also accelerate policymaking around:
caps on dominant market share
competitive safeguards for new entrants
tighter compliance checks on roster and safety norms
As Parliament continues to debate the disruptions, consumer rights groups and industry experts warn: India’s aviation infrastructure cannot depend on one or two giants.
