Breakingviews - India Encounters Self-Inflicted Turbulence in the Airline Industry

Written by Emily J. Thompson, Senior Investment Analyst

Source: Reuters

Updated: Dec 08 2025

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Source: Reuters

IndiGo's Flight Cancellations: IndiGo has been canceling over 1,000 flights daily due to a failure to adapt to new pilot rest regulations, highlighting its significant market dominance in India's aviation sector.
Market Dynamics: IndiGo controls approximately 65% of the Indian aviation market, which has been exacerbated by the collapse of competitors like Jet Airways and GoAir, limiting competition and options for consumers.
Regulatory Response: The Indian government has responded to the crisis by granting IndiGo temporary exemptions and capping airfares, but these measures do not address the underlying issue of market dominance.
Need for Systemic Changes: To improve the aviation landscape, New Delhi should consider reducing fees for smaller airlines, addressing leasing costs, and expediting bankruptcy processes to foster a more competitive environment.

About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.