Guruva Reddy Dharam
India’s civil aviation sector today stands at a critical crossroads. As a country of 140 crore people, our domestic air travel is shockingly dependent on just two airline groups—IndiGo and the Air India Group. This excessive concentration of market power has created an ecosystem that is dangerously susceptible to operational shocks, regulatory changes, manpower shortages and single-point failures. I write this not merely as an observer but as someone who, like lakhs of passengers recently, experienced the consequences of this structural fragility first-hand.
The latest nationwide disruption triggered by acute crew shortages at IndiGo is a telling example of how vulnerable the system has become. With IndiGo alone carrying nearly 62% of all domestic passengers, the impact of any internal issue is bound to be massive. The implementation of Phase-II of the new Flight Duty Time Limit (FDTL) norms—with mandates such as 48 hours of weekly rest, a stricter definition of night duty, and the reduction of allowed night landings from six to two—exposed deep cracks. Both IndiGo and Air India had resisted these rules for over a year citing inadequate crew availability, but after the Delhi High Court intervened, the norms had to be rolled out, albeit with variations for the two carriers.
The fallout was immediate and chaotic. Some days saw only 35% of IndiGo flights operating on time. Hundreds of flights were either cancelled or delayed by seven to eight hours across major airports including Delhi, Mumbai, Hyderabad and Bengaluru. I witnessed airports filled with stranded passengers, each disruption snowballing into a nationwide gridlock that affected more than five lakh travellers per day. That a single operator’s staffing issue could paralyse the nation’s air travel underscores the alarming absence of resilience planning in our aviation system.
The economic damage was equally severe. Businesses lost crucial hours, revenue opportunities vanished, and negotiations were postponed or collapsed. Passengers were forced into unplanned expenses on hotels, meals and alternative transport. Airlines themselves absorbed operational losses which will, inevitably, reappear as higher fares. Cargo schedules broke down, affecting industries reliant on precision timing. The stress, fatigue and productivity loss across the workforce were immense. Globally, studies confirm that even marginal flight delays shave off significant labour productivity, and a 1% rise in delays can translate into almost 1% in economic loss. The cumulative cost easily runs into billions annually—an unacceptable burden for a fast-growing economy.
These events highlight the need for a structural overhaul, one that requires the direct attention of the Prime Minister’s Office. Several deep-rooted issues must be addressed. Market concentration is the foremost problem: two major players dominating the sky makes the entire system fragile. Then come the regulatory gaps—our key aviation laws still date back to the 1930s, and the DGCA continues to remain under-staffed, under-equipped and far behind global regulators in autonomy and technological capability. Airport monopolies, especially in metros, keep charges high and restrict passenger welfare. Entry barriers—financial, regulatory and infrastructural—are so steep that new airlines struggle to even take off. Regional connectivity remains incomplete; while UDAN has made progress, Tier-2 and Tier-3 networks lack frequency, reliability and meaningful reach. And perhaps the biggest wasted opportunity: only 4% of Indians fly annually, far below global norms, largely because high fares and limited options make flying inaccessible.
To break this cycle, bold reforms must be pushed from the highest level. Competition needs to be encouraged not just across airlines but across airport operators too, particularly in major metros. Compliance burdens and cost barriers for new entrants must be lowered. Cartel-like behaviour and dominance practices require strict scrutiny. India must also modernise its regulatory framework—updating the Aircraft Act and Rules, strengthening DGCA’s manpower and technological oversight, and institutionalising regular competition and market-dominance audits.
Bilateral and open-sky policies need a forward-looking re-evaluation. Liberalising access for international carriers and positioning Indian airports as global connection hubs can significantly expand capacity and reduce stress on domestic operators. Strengthening regional connectivity should be another priority: expanding UDAN with accountability-linked incentives, boosting viability-gap funding for remote routes, and promoting regional aircraft-based feeder networks can bring aviation closer to the masses.
Consumers, too, deserve protection. Abnormal fare spikes during crises must be monitored. Fare transparency should be mandatory, and predatory pricing or coordinated anti-competitive practices must be curbed decisively.
India’s aviation sector is critical to national mobility, economic productivity and global competitiveness. The recent collapse triggered by FDTL-linked crew shortages in a highly concentrated market is a wake-up call. A PMO-led structural reform mission is not just desirable—it is essential to build resilience, strengthen competition, modernise regulatory capability and ensure that every Indian has access to safe, reliable and affordable air travel.
