Aviation minister targets duopoly as IndiGo chaos spurs new airlines push
Aviation minister targets duopoly as IndiGo chaos spurs new airlines push
Amid IndiGo flight cancellations, the government vows to diversify the aviation sector by inviting more carriers, ensuring fair access and swift action on non-compliance.
Union Civil Aviation Minister Ram Mohan Naidu told the Lok Sabha that the government intends to build a more robust and competitive aviation sector by encouraging more new airlines to enter the market. He said the Centre is determined to ensure fair access to airport capacity and to prevent the concentration of economic power in the hands of a few. He stressed that more airlines mean more choice and more affordable connectivity, and added that strict and appropriate action will be taken against IndiGo for the nationwide flight cancellations and disruptions. The DGCA has issued notices to IndiGo, and the airline is being held accountable for crew rostering failures. Naidu noted that refunds worth over Rs 750 crore have already reached passengers, and that rebookings were offered with no extra charges. He also said IndiGo has assured full compliance with flight duty norms and is prepared for the winter schedule as schedules across the sector begin to stabilise.
With IndiGo holding around 65% of the market in October, the government says it wants to foster five big airlines and bring more competition to spur better prices and service. Opposition leaders have criticized the current setup as monopoly-like, but Naidu stressed that the aim is reform rather than punishment so that the market can flourish with many players. He emphasised safety as non-negotiable.
Market watchers warn about the challenges, including high capital costs, regulation, fuel prices, and rising airport charges, but the central message remains: diversification and a rules-based framework to prevent a duopoly.
As the sector moves toward a more competitive era, passengers and investors will watch whether policy moves translate into improvements in reliability, pricing, and airline entry timelines. The government's focus on action, refunds, and new carrier entry signals a potential turning point for Indian aviation if plans materialise.
Cover image source: Minister Faces Parliament Flak On Aviation Duopoly, Says Working On Encouraging More Airlines 🔗
