The rupee gained 42 paise to close at 91.51 (provisional) against the U.S. dollar on Monday (February 2, 2026), a day after the Union Budget 2026-27 was presented, largely as crude oil prices retreated from their elevated levels. Also Read | Rupee hits all-time low of 92 against U.S
The Union Budget 2026 has proposed a significant change that directly affects investors who borrow funds to invest in dividend-paying stocks or mutual funds. The proposal removes the existing tax benefit that allowed investors to claim a deduction on interest paid for such borrowings
West Bengal emerged as a major beneficiary of railway-led infrastructure expansion this weekend, with a series of announcements signalling a significant boost for connectivity in the state, particularly in North Bengal. A day after the Ministry of Railways cleared three new railway line projects
Hours before she was scheduled to lead a Trinamool Congress (TMC) delegation to meet Chief Election Commissioner Gyanesh Kumar in Delhi over the Special Intensive Revision (SIR) of electoral rolls, West Bengal Chief Minister Mamata Banerjee on Monday alleged that Bengalis in the Capital were being
The NFL's 2025 season has provided the most wide-open race for the Super Bowl in years. Now just the New England Patriots and the Seattle Seahawks remain and they will meet on Sunday to decide the NFL champions. It is a title New England have held six times but this is their first Super Bowl since
IndiGo disruption reflects the crisis in India’s aviation sector
The recent crisis involving IndiGo has exposed deep structural problems in India's aviation sector.
What unfolded early this year was not merely an operational lapse or a temporary disruption, but a reflection of the power imbalance in a high demand aviation market with two dominant players.
Sixty percent of India's domestic market share is held by IndiGo; out of nearly 900 domestic routes, IndiGo is the only carrier on 514 routes.
Together with Air India, the two carriers control a staggering 86% of the market.
By itself, high market concentration is not proof of monopoly. But it does create grounds for business practices that may fall under the Abuse of Dominant Position clause in India's Competition Act, 2002.
For instance, in the recent crisis, it created a situation where the airline made decisions that severely inconvenienced passengers and compromised their welfare – flight cancellations and subsequent charging of exorbitant prices – without worrying that it would lose customers.
The Competition Commission of India has decided to investigate IndiGo under this clause.
The immediate reason for the crisis lay in the airline's non-adherence to the Flight Duty Time Limit regulations, announced early January. These guidelines were designed to ensure safety by preventing pilot fatigue, a critical concern in aviation worldwide.
Airlines such as IndiGo had enough time to prepare for the transition, adjust crew schedules, hire appropriately, and strengthen operations. Yet, they delayed implementation, creating a situation where operational capacity was strained to the breaking point.
By failing to prepare for a well-anticipated regulatory change, IndiGo and other carriers left regulators with no option but to put Flight Duty Time Limit regulations in abeyance.
If found guilty by the Competition Commission of India, under Section 4 of the Competition Act, IndiGo can be penalised for up to 10% of its total revenues, and depending on the findings, the Commission can also order structural remedies, including changes to business practices or removal of certain routes from its network.
Here, one might be reminded of IndiGo's past encounters with the CCI, where no anti-competitive intent could be established. In 2015, when IndiGo was accused of poaching pilots from other airlines, the matter was investigated under Section 4 of the Competition Act. The regulatory body concluded that there was no evidence of anti-competitive intent.
In 2018, in a separate case against IndiGo, Spice Jet and Jet Airways, the CCI found that they had colluded over fuel surcharge rates on cargo flights, and fined them.
In 2020, in yet another case, the Competition Commission of India found no evidence of collusion over ticket prices by IndiGo, SpiceJet, GoAir, Air India and Jet Airways.
Post-liberalisation, with the entry of several private players, the monopoly of Indian Airlines and Air India on air transport was diluted.
As of January 2008, there were 14 scheduled and 70 non-scheduled airlines in India. This included several low-cost carriers such as Deccan, Go-Air, and Spice-Jet.
IndiGo entered the market in 2006.
These low-cost carriers changed the aviation industry: multiple slab tariffs allowed the entry of a whole new segment of air travellers.
Increased passenger volumes compelled incumbent full-service airlines to revisit their cost structures and pricing strategies.
The market share of nine major airlines ranged from 1% to 23%, with IndiGo accounting for 9%. In terms of fleet size, Jet airways was the biggest player next to Indian Airlines, with IndiGo operating just seven aircrafts in 2007.
From that modest beginning, to today's position of a dominant carrier, IndiGo's journey is about business acumen and well thought out strategies that helped the carrier outlive a policy space that failed to adapt to the emerging competitive environment.
In the early 2000s, the aviation sector faced several structural challenges.
Though the modernisation and privatisation of airports improved infrastructure, it was accompanied by extremely high user fees and airport development fees. The User Development Fees varies across airports and is passed on to both the passengers and carriers, affecting profitability of carriers.
ATF accounts for more than 40% of the operating expenses of carriers, and volatility in ATF prices have implications for profitability. Add to this the stringent compliance regime and multiple administrative reporting procedures for The Directorate General of Civil Aviation, Airports Authority of India, and the Ministry of Civil Aviation.
In short, the Indian aviation sector can be described as high on investment, and low on what is referred to as “ease of doing business”.
At play was also IndiGo's business strategy of aggressive bulk purchases and advance ordering, that locked airplane manufacturer discounts, and ensured an inventory of new fuel-efficient aircrafts in a volatile fuel cost environment. This enabled IndiGo to achieve significant cost advantages over competitors and maintain consistently low operating expenses.
A modern, fuel-efficient fleet also meant higher reliability and quicker turnaround times.
The carrier was consistent on its low cost approach and maintained a highly homogenised single-type fleet. The dividends came in the form of simplified training requirements, savings on training costs and overall cost efficiency.
The airlines also took advantage of the emerging markets, and continued to deliver on its brand positioning as a reliable and cheap option.
Other airlines failed to respond to the new competitive environment and the adverse policy landscape. Their exit, including that of Jet Airways, created a vacuum that IndiGo swiftly filled.
Thus IndiGo's growth is an outcome of tight financial prudence and a competitive edge despite an unfavourable aviation policy regime.
The going was good, until it was not.
A recent estimate pegs the growth of the Indian airline industry at 104.24%, and passenger capacity at 1 billion per annum.
With the government's UDAN scheme democratising air travel and bridging the infrastructure gap, passenger traffic in the country is expected to grow six-fold. By 2040, the airline fleet is predicted to grow to 2359 – it stood at 400 in 2014 – and generate 25 million jobs by 2040.
But consumer welfare in aviation – or any other industry – depends on healthy competition. Ideally, India needs at least three to four strong players to absorb shocks, maintain service standards, and give customers viable alternatives.
With air travel becoming essential for millions of Indians, this is no longer just a business concern. It is a public interest issue.
Besides, the recent crisis raises concerns not just about airline accountability, but also regulatory oversight.
The Directorate General of Civil Aviation (DGCA) must enforce stricter compliance, monitor airline preparedness, and act decisively when service lapses cause widespread public hardship.
IndiGo's dominance may have grown organically, but its responsibilities have grown equally. It cannot be allowed to evade accountability for the turmoil it created.
Only then can the aviation sector function with reliability, fairness, and resilience.
Sangita Dutta Gupta is Professor, Economics at BML Munjal University, Haryana. M Manjula is Faculty, Azim Premji University, Bengaluru. Tania Ghosh is Assistant Professor, Shri Shikshayatan College, Kolkata.
Originally published under Creative Commons by 360info™.
Source: Scroll
Related Posts: US role overstated in India-Pakistan crisis IndiGo launches ‘UpFront’ Deadly Winter Storm Grips US As Deep Freeze Continues Man who exposed human rights abuses in China granted US asylum Capital's Cardiac Crisis Kashmir snow crisis disrupts life amid record accumulation IndiGo Launches ‘Frontbenchers’ Economy Service India's snakebite crisis is killing tens of thousands every year Iran's Khamenei says recent anti-government protests akin to Ola Electric to lay off about 5% of workforce amid ‘structural transformation’
Nabha Natesh's mesmerizing first look as Parvathi intensifies the divine mystery of Nagabandham. New Delhi: One of the most anticipated pan-India films of 2026, Nagabandham, has been steadily building excitement with a series of striking posters and character reveals
1 days ago
A Bangladesh court on Monday (February 2, 2026) sentenced deposed Prime Minister Sheikh Hasina to 10 years in jail in two separate corruption cases related to alleged irregularities in allocations of land in a government housing project. Dhaka Special Judge's Court-4 Judge Rabiul Alam handed down
1 days ago
Tom Banton hit 54 not out off 33 balls and England won the second T20 against Sri Lanka by six wickets with two balls remaining under the DLS method to clinch the series. England has a 2-0 lead in the three-match series ahead of cricket's T20 World Cup, which starts on Saturday (February 7, 2026)
1 days ago
West Bengal CM Mamata Banerjee met families affected by the Special Intensive Revision (SIR) at Delhi's Banga Bhavan on Monday, accusing Delhi Police of failing citizens. West Bengal Chief Minister Mamata Banerjee met families affected by the Special Intensive Revision (SIR) at Banga Bhavan in
1 days ago
The global ratings anticipates that these growth rates continue to place India above sovereign peers at similar income levels and should continue to support fiscal revenue increase. New Delhi: Robust consumer spending and public investments will maintain India's real GDP growth at 6
1 days ago
A political row broke out after Opposition leader Rahul Gandhi in Parliament quoted an excerpt from the unpublished memoir of former Army chief MM Naravane. The excerpt was about the political decision-making during the 2020 border tensions between India and China
1 days ago
Goa has long been a favourite beach destination for Indian travellers, celebrated for its vibrant parties, delicious food and stunning sea views. However, recent concerns about rising prices, poor cleanliness, traffic jams, and a lack of basic civic sense have dampened the experience for many
1 days ago
Brett Ratner, the director of the newly-released documentary on US First Lady Melania Trump, has appeared in the files concerning the probe into late sex offender Jeffrey Epstein's sex trafficking network. The US Department of Justice, on Friday, released the latest cache of the Epstein Files
1 days ago
Actor-politician Vijay stated his party, Tamilaga Vettri Kazhagam, has grown significantly due to public support. He asserted that TVK alone possesses the strength to defeat the DMK in the upcoming Assembly elections. Vijay believes the electoral battle will be a direct contest between TVK and the
1 days ago
Vijay Sales has introduced limited-period Valentine's Day deals on Apple's latest smartphones, offering price cuts on the iPhone Air and iPhone 17 Pro, along with further savings through select bank card transactions. Customers using ICICI Bank credit or debit cards on EMI purchases can access
1 days ago
A Bangladeshi court on Monday sentenced deposed Prime Minister Sheikh Hasina to 10 years imprisonment in two corruption cases relating to alleged irregularities in the allocations of land in a government housing project in Dhaka, The Daily Star reported
1 days ago
Former Indian cricketer Subramaniam Badrinath has taken a swipe at Pakistan following the government's decision to have its men's team boycott the group-stage clash against India in the ICC Men's T20 World Cup. Former Indian cricketer Subramaniam Badrinath has taken a swipe at Pakistan following
1 days ago
Civil society groups and rural employment activists have criticised the Union Budget's allocations for rural job schemes, alleging that the government has offered little clarity on the transition from the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) to the new Viksit
1 days ago
The partial US government shutdown entered its third day on Monday without resolution as Democrats continued to demand immigration reforms as part of any funding deal to reopen the government. Senate Democrats and Republicans agreed to a package of five spending bills on Thursday
1 days ago
The Supreme Court on Monday granted bail to three persons accused of tampering with blood samples in connection with an investigation into a car crash in Pune in May 2024 that killed two, Bar and Bench reported. A bench of Justices BV Nagarathna and Ujjal Bhuyan granted bail to Aditya Avinash Sood
1 days ago
On World Cancer Day, India must confront a hard truth. Head and neck cancers represent one of the largest and most neglected cancer burdens in the country, and tobacco is the single biggest driver behind it. This is not a disease of rare genetic bad luck. It is a man-made
1 days ago
In the footage, a group of uniformed firefighters is seen using buckets from a nearby water source to pour over the flames. The video raises broader concerns about the country's emergency response systems. Several netizens pointed out that in the footage
1 days ago
Actor posted a video of the matter, in which he can be seen confronting the waiter and demanding an explanation while waiter and manager are seen seeking apologies. A waiter at a popular pub on Park Street in Kolkata was taken into custody on Saturday after Bengali actor and social media influencer
1 days ago
The BJP Parliamentary Board has appointed Tarun Chugh as the central observer for the election of the legislature party leader in Manipur. This move signals the potential formation of a new government in the northeastern state. NDA MLAs from Manipur have arrived in the national capital for
1 days ago
Iran said negotiations with the United States over a new nuclear deal could begin in the coming days, as diplomatic efforts intensify to avert a potential military conflict between the two sides. President Masoud Pezeshkian has ordered the start of negotiations with Washington “within the
1 days ago
As protesters filled the streets of Milan this weekend over the presence of ICE agents in Italy, a very different reality awaits athletes heading into the 2026 Milano-Cortina Winter Olympics, which begin next week. While politics are bubbling loudly outside the venues
1 days ago
Reaching for an antacid has become almost as routine as drinking a cup of tea. For many people, acidity is seen as a harmless daily discomfort, something to suppress and move on from. But this common habit hides a dangerous misunderstanding. Acidity is not a disease; it is a symptom
1 days ago
The year 2026 could bring a significant turning point for salaried employees. A major decision related to the Employees' Provident Fund Organisation (EPFO) is expected soon. The central government is seriously considering increasing the EPF wage ceiling. If this proposal is approved
1 days ago
A 20-year-old female student was found dead in her hostel room at the BITS Pilani campus in South Goa, police said on Monday. The student, identified as Vishnavi Jitesh (20), was a third-year engineering student. Police said she was found hanging from a ceiling fan with a bedsheet tied around her
1 days ago
A key issue in achieving the target set by the National Education Policy (NEP) 2020 to increase expected years of schooling in India to 15 years (it is currently 13 years) was the “uneven distribution of schools”, the Union government said on Thursday (January 29
1 days ago
Three PGA Tour victories and two near misses in the majors have left Justin Rose feeling vindicated by his decision to reject offers from the Saudi Arabia-backed LIV Golf series. The Englishman claimed his 13th PGA Tour title on Sunday after a dominant week at Torrey Pines in California
1 days ago
West Bengal Chief Minister Mamata Banerjee has launched an attack on Election Commission after meeting Chief Election Commissioner Gyanesh Kumar in Delhi over the Special Intensive Revision (SIR) issue. Speaking with the press after meeting the EC officials
1 days ago
