- KR Bharat
- 2025-12-27
The recent operational meltdown at IndiGo, India’s largest airline with over 60% domestic market share, has underscored the challenges posed by the aviation duopoly. Together, Air India and IndiGo control over 90% of the domestic market, stifling competition and contributing to service disruptions.
Despite India being the world’s third-largest aviation market with 241 million flyers in 2024, the passenger aviation sector continues to struggle. High operating costs, fuel price volatility, infrastructure bottlenecks, a shortage of pilots and planes, ageing fleets, regulatory weaknesses, and safety concerns have made domestic flying unreliable and stressful for passengers. Frequent flight cancellations, poor communication, and inadequate route planning further aggravate the situation.
In response, the Ministry of Civil Aviation (MoCA) recently issued No Objection Certificates (NOCs) to two new regional airlines, Al Hind Air and FlyExpress, bringing the total in the pipeline to four. Earlier, Air Kerala and Shankh Air had received NOCs but are yet to start operations. While this move is a positive step to spur competition, systemic challenges remain.
Historically, regional airlines in India have struggled to survive due to high debt, operational costs, limited financial backing, and low demand at smaller airports. Several carriers, including Paramount Airways, Air Pegasus, TruJet, Zoom Air, Air Carnival, Air Costa, Air Mantra, and Air Odisha, have collapsed in the last two decades.
To unlock the full potential of India’s aviation market, particularly the regional segment, authorities must simplify approval processes, provide financial support, and address operational and infrastructural constraints. Only then can competition thrive, passenger experience improve, and the sector achieve sustainable growth.
