Air India Ltd., which has been stumbling through its transition from state ownership to Tata Group control, faced embarrassing slip-ups as well as human tragedy last year
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Moneycontrol05-01-2026, 14:26

Crises Rock India's Aviation Boom: IndiGo, Air India Expose Systemic Flaws

  • Crises at IndiGo (pilot shortages, software glitches, thousands of cancellations) and Air India (safety issues, Dreamliner crash, leadership changes) expose fragility in India's booming aviation market.
  • The market is a near-duopoly, with IndiGo and Air India controlling 9 out of 10 domestic seats, magnifying the impact of these shocks.
  • India's aviation regulator, DGCA, faces severe limitations in autonomy, funding, and manpower, struggling to keep pace with explosive industry growth.
  • Despite rapid growth (fleet expansion, new airports, passenger surge), systemic issues like pilot/aircraft shortages and regulatory oversight gaps persist.
  • Experts warn of a "dangerous inflection point," urging regulatory independence and increased resources to ensure effective oversight and sustainable growth.

Why It Matters: India's aviation boom is threatened by systemic flaws in top airlines and regulatory oversight.

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