 "Can India let IndiGo fail? Airline crisis puts spotlight on country's aviation industry")
IndiGo’s mass cancellations of flights this week have disrupted the travel plans of thousands of passengers, triggering anger and chaos at airports across the country amid crew shortages.
In the world’s largest aviation market, passengers lay bare the risks of having a duopoly-like situation. IndiGo has become the poster child of the nation’s aviation boom in recent years.
IndiGo has grounded several flights since last week, with at least 2,000 cancelled. Thousands of passengers have been stranded by last-minute cancellations, with many forced to seek alternative modes of transport amid the uncertainty.
The uncertainty stranded thousands of passengers limiting their work and upending vacation plans, weddings and flooded social media with photos and videos of luggage piling up at the terminals.
The scenes were never witnessed before, but the question remains whether this was the fault of IndiGo or aviation mismanagement. IndiGo has said it hopes to return to normalcy in the coming days, but its troubles have drawn warnings from both politicians and aviation experts.
Government’s measures
The government stepped in swiftly, relaxing rules on pilot fatigue management to ease the disruptions. IndiGo has repeatedly apologised but has not disclosed financial losses from the crisis.
“IndiGo’s size has grown to the point where operational setbacks pose systemic risk,” said Harsh Vardhan, chairman of Starair Consulting.
If IndiGo or Air India get into trouble, there will be mayhem in Indian aviation … the government needs to reduce jet fuel taxes and encourage more competition," he further added.
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View AllIndiGo’s monopoly in India
India’s aviation market has two pillars Air India and IndiGo as analysts say that 92 per cent share of IndiGo and Air India means it is a duopoly-like situation and creates vulnerabilities.
G.R. Gopinath, founder of now-defunct low-cost airline Air Deccan, wrote in a weekend editorial in the Economic Times newspaper, “A country cannot grow robustly with duopolies, or effective monopolies, in any sector.”
As the government tries to expand the aviation industry, competition still persists as most of the airline went into bankruptcy in recent years.
On Sunday, it said it was on track to operate more than 1,650 flights and expressed confidence that operations would stabilise by Wednesday.
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