INDIGO CRISIS: LIBERALIZATION IS NOT ENOUGH IF CONSUMER TRUST IS ERODED

Over the past three decades, India’s economy has transformed as several sectors, including aviation and insurance, were opened to private players.

- ANTONY JACOB

Both industries, along with others such as telecom and banking, are essential to India's GDP (Gross domestic product) trajectory, national competitiveness, and global ambition. They touch the daily lives of millions of Indians and require deep infrastructure, robust regulation, and sustained capital to serve a rapidly expanding market.

Yet, their journeys could not have been more different.

Aviation was among the first sectors to be liberalized in the 1990s. The promise was immense: improved connectivity, stronger tourism, and global mobility. Private carriers delivered much of this—expanding tier-2 and 3 networks and improving service standards.

But the sector has witnessed repeated turbulence. Kingfisher Airlines collapsed under the weight of debt and inefficiencies. Jet Airways, once the industry leader, shut down following sustained financial stress. More recently, flight delays, staffing shortages and operational disruptions at IndiGo have again placed the spotlight on the fragility of airline operations.