Particle.news
Download on the App Store

IndiGo Collapse Exposes India’s Two-Carrier Grip on Domestic Aviation

Policymakers now confront duopoly risks, prompting calls for earlier oversight.

Overview

  • IndiGo is restoring services after last week’s mass cancellations, aided by temporary regulatory exemptions to stabilize operations.
  • Official data show IndiGo controls roughly 63–65% of domestic traffic and the Tata group about 26–27%, giving the two more than 90% combined share.
  • Route-level analysis indicates IndiGo operates over 950 domestic routes, with nearly 600 served solely by the airline and roughly 200 with only one rival.
  • In Parliament, Civil Aviation Minister K. Rammohan Naidu said India needs five big airlines as MPs urged a DGCA–CCI review to boost competition and protect consumers.
  • The disruption has intensified scrutiny of concentrated markets across sectors, with analysts flagging high entry barriers and the CCI pursuing more digital-market probes.