TURBULENCE AHEAD: INDIGO’S CRISIS AND THE COST OF CONCENTRATED SKIES

A wave of large-scale IndiGo flight cancellations has once again pushed India’s aviation sector under the microscope.

- DR. ANKIT SRIVASTAVA & PANKAJ CHHUTTANI

The disruptions began soon after the Directorate General of Civil Aviation (DGCA) rolled out its revised Flight Duty Time Limitations (FDTL), which mandate longer pilot rest hours and limit duty periods to reduce fatigue. Pilot unions had long argued that older norms offered weaker protections than those in the U.S. or EU. The DGCA insists the changes align with global standards and were announced well in advance, while The Ministry of Civil Aviation maintains that safety must outweigh operational convenience. IndiGo has called the disruption temporary, but the episode exposes how dependent India’s skies have become on one dominant airline.

When One Airline Sneezes, the System Catches a Cold

Though triggered by regulation, the scale of the disruption reignited concerns about market concentration. IndiGo carries over more than half of India’s domestic passengers. This dominance means any operational strain reverberates nationally. With no competitor possessing comparable fleet capacity, the system lacks redundancy. Passengers encountered difficulties in securing alternative flights. Fares rose sharply on competing carriers as demand shifted. Dynamic pricing permits such adjustments. Yet the sudden rise highlighted the limited number of substitutes available to consumers.

Is IndiGo a Monopoly—or Simply Too Big to Fail?