According to government data, the number of operational airports has increased from 74 in 2014 to 163 in 2025. The government has set an ambitious goal to expand this network to 350 to 400 airports by 2047. Aviation has also become one of the fastest growing sectors of the economy, contributing not only through air transport services but also by boosting tourism, trade, logistics and manufacturing.
Yet the structure of the market has become increasingly concentrated. According to the Directorate General of Civil Aviation (DGCA), IndiGo currently has a dominant share of 65% in the domestic market. The Air India Group – comprising Air India and Air India Express – owns 26%, while Akasa Air owns 5%, maintaining its position as the third largest domestic airline. SpiceJet accounts for just 2%, while all other airlines together account for the remaining 2%.
Several national and regional airlines are struggling to survive in what is often described as the fastest growing aviation market in the world. The collapse of Jet Airways earlier and Go First in May 2023 further accelerated the consolidation, allowing IndiGo to significantly expand its footprint.
However, this dominance has come under scrutiny following the recent mass cancellations of IndiGo flights that caused widespread air traffic disruption across the country. Regulators noted that the airline had failed to adequately manage its operational resources, including aircraft availability and pilot scheduling.
In response, authorities decided that IndiGo’s approved winter program should be revised and shortened by at least 10%. The existing show-cause notice to the airline will be amended and a new notice is likely to be issued. The situation will be assessed periodically for any further action deemed necessary.
The issue was also raised in the Rajya Sabha on December 8, where Civil Aviation Minister K. Ram Mohan Naidu said the government would take “very, very strict action” against IndiGo to “set an example” for the industry. During Question Hour, the minister said the disruption stemmed from IndiGo’s internal shortcomings, particularly its inability to manage crew availability and schedules.
“We are not taking this situation lightly. We are investigating. We will take very, very strict measures not only for this situation but also as an example,” he said.
Mr Naidu also outlined the implementation of revised Flight Duty Time Limitation (FDTL) norms, introduced following a Supreme Court order in April 2025. Of the 22 guidelines, 15 were implemented from July 1 and the remaining seven from November 1. He emphasized that the rules have been formulated after extensive consultations with all stakeholders, including IndiGo, and must be followed “without any compromise on safety”. The updated FDTL standards significantly tighten crew planning regulations. Pilots are now imposed a weekly rest period of 48 hours, compared to the previous rule of 36 hours, and night landings are limited to two instead of six previously.
Chairman of IndiGo’s board of directors Vikram Singh Mehta, in his message to air passengers, dismissed allegations that the crisis was engineered and that the airline was trying to influence the government over the revised Flight Duty Time Limitation (FDTL) rules.
Flight safety
While airlines claim these measures disrupt schedule planning and aircraft usage, especially at hubs with heavy night flights, pilot unions argue the limits are essential to reduce cumulative fatigue and increase flight safety.
Financial data highlights the stark contrast within the sector. In a written response, the Ministry of Civil Aviation said IndiGo was the only major airline to post a profit in the financial year 2024-25, earning ₹7,253 crore. Air India reported a loss of ₹3,976 crore, Air India Express ₹5,832 crore, Akasa Air ₹1,986 crore and Alliance Air ₹691 crore. SpiceJet also remained in the red with a loss of ₹56 crore, while regional airline Star Air was a rare exception, posting a modest profit of ₹68 crore. Air India is currently undergoing a massive transformation after being acquired by the Tata Group in 2022, while Go First remains grounded after suspending operations in 2023 due to severe financial stress.
Meanwhile, IndiGo continues to plan aggressively for the future. The airline has placed an order for 500 Airbus A320 Family aircraft – the largest order for a single aircraft ever placed by an airline with Airbus. These deliveries, planned between 2030 and 2035, will further strengthen IndiGo’s scale and long-term growth prospects.
Amid regulatory action, IndiGo has said its operations are stabilizing. Demonstrating “continued operational normalization” over the past five days, the airline says it is operating more than 2,050 flights per day on its revised, scaled-down schedule in line with government guidelines. All 138 operational destinations remain connected and on-time performance has returned to normal levels, an IndiGo spokesperson said.
As the Indian aviation sector continues its rapid expansion, the current episode underlines the challenges of balancing growth, safety, competition and responsibility in an increasingly consolidated market.
Published – 14 Dec 2025 01:54 IST
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