Of Monopolies And Accountability

The catastrophe in IndiGo Airlines’ services marked by the cancellation of 1600 of its 2000 daily flights and the June 12 crash of an Air India Boeing 787-8 at Ahmedabad in which 260 were killed, necessitate sweeping reforms in India’s aviation sector.

IndiGo had an undisputed position in Indian aviation with a 61% share of the market. It was rated highly in terms of its service and affordability. It was considered too big to fail. But it failed, manifestly and tellingly, stranding thousands of passengers all across the country as flights were cancelled in dramatic sequence within hours. All because new rules taking into account the pilots fatigue factor kicked in, almost two years after the Directorate General of Civil Aviation had given notice on this. The rules drastically cut the number of hours pilots and crew could fly; mandated longer rest periods; limited night-time landings; and redefined night duty periods. The new standards increased the mandatory rest period for pilots by 12 hours a week to 48 hours and stated that pilots could make no more than two night-time landings in a week, down from six earlier.

The Government of India has appointed a high-level inquiry committee. However, with the available information, the collapse appears to have stemmed from a set of inter-related factors. These are - the sheer size of the airline’s operations; its monopolistic hold on the aviation sector with no competitors to compel rectification of deficiencies; sloppy management practices made worse by greed for profits; the high cost of fuel; the pilot recruitment policy; government’s regulation of the working hours of pilots; and the poor state of the maintenance and repair sector.

India will need 35,000–40,000 new pilots in the next decade, with at least 7,000 required by 2026. The supply isn’t negligible but there is a “shortage” because airlines are not recruiting. Indigo was way behind schedule in implementing the new rules. The Civil Aviation Ministry said in a statement that the disruptions arose primarily through misjudgement and planning gaps in IndiGo’s implementation of the new rules. Besides as The Federation of Indian Pilots said the rules could not be blamed as all other airlines have provisioned pilots adequately and remain largely unaffected.

In the wake of last week’s disruptions, IndiGo has sought more time until February 10 to implement the provisions. On Friday, the government agreed to withdraw a part of the rules with immediate effect raising questions of air safety yet again.

The virtual monopolistic structure of the aviation sector in India with just two companies, IndiGo and Air India, accounting for 91% of the market, is a cause of the high impact glitch seen in IndiGo’s services last week. Given the extent and the high integration of the service, a glitch can impact the entire system.

Media reports have listed nine airlines that had vanished from Indian skies in the past 25 Years. Their disappearance had helped IndiGo capture the market, the weekly said.

Air Sahara, which expanded ambitiously across northern India and later to international destinations, went without a trace. In April 2007, Jet Airways acquired it for Rs 1450 crore, rebranding it as JetLite. Both JetLite and Jet Airways collapsed together in April 2019.

In 2003, Air Deccan introduced a radical idea- anyone should be able to fly for the price of a train fare. With ATR 42 and 72 aircraft connecting smaller cities, Air Deccan became the airline of the common man. But finances could not keep pace with rapid expansion.

Kingfisher Airlines acquired it in 2008, but Kingfisher also did not last. High fuel prices, overspending, and inefficient fleet planning triggered a snowballing financial crisis. Salaries went unpaid, planes were grounded, and banks pursued dues exceeding Rs 7000 crore. Kingfisher's licence was suspended in October 2012, marking the end of its flamboyant era.

Paramount Airways offered premium seats at competitive prices. With Embraer E170/190 aircraft and an all-business-class pitch, it targeted southern business travellers. However, legal disputes, unpaid dues, and financial mismanagement led to a licence suspension in 2010. The airline never returned to the skies.

Founded in 1993, Jet Airways grew into India's premier private airline and acquired Air Sahara in 2007. As low-cost rivals increased pressure and debt spiralled out of control, Jet could no longer sustain operations. In April 2019, all flights were halted. In November 2024, the Supreme Court ordered liquidation.

TruJet focused on regional connectivity. Launching in 2015 with ATR aircraft, the brand tapped into Tier-2 and Tier-3 travel demand. But pandemic-era losses and continued financial strain forced a shutdown in February 2022.

Go First (GoAir) had severe engine supply issues from Pratt & Whitney left over half its fleet grounded. The ultra-low-cost carrier faced liabilities of INR 6521 crore. The National Company Law Tribunal ordered its liquidation in 2025.

Vistara did not shut down due to losses. Launched in 2015 as a Tata Sons and Singapore Airlines partnership, the brand officially ceased to exist in November 2024 when it merged into Tata's Air India.

AIX Connect (formerly AirAsia India) disappeared more quietly. After the Tata takeover of Air India, the group merged Air India Express and AIX Connect under the single Air India Express brand.