IndiGo’s meltdown is a wake-up call that we are building an economy that is efficient, streamlined and increasingly fragile. (AFP)
Opinion
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News1820-12-2025, 15:33

IndiGo Crisis Exposes Monopoly Peril: India's Skies Too Concentrated, Consumers Suffer

  • IndiGo's operational crisis revealed India's aviation market vulnerability due to extreme concentration, paralyzing national mobility.
  • India has shifted from public monopolies to private duopolies/oligopolies, creating "national champions" but reducing consumer choice and market resilience.
  • IndiGo carries nearly two-thirds of domestic passengers; its disruptions highlight a flawed market design lacking redundancy and systemic risk mitigation.
  • Existing competition law is blind to dominance not arising from mergers, while consumer protection is weak for mass-harm events, lacking automatic compensation or collective redress.
  • Regulators like DGCA lack the power to impose structural remedies or economic penalties, making the economy fragile and consumers vulnerable to essential service failures.

Why It Matters: IndiGo's crisis shows market concentration's high price; India needs stronger regulation for consumer protection.

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