IndiGo, India's largest airline, recently faced a major operational crisis, shedding light on the potential risks associated with corporate dominance in the aviation sector and other key industries. The airline, which operates about 2,200 flights daily, controls 65.6% of India's domestic aviation market.
IndiGo's recent turmoil was triggered by its failure to comply with new government regulations requiring increased rest periods for pilots.
This oversight led to a shortage of crew, resulting in the cancellation of approximately 3,000 flights over a few days, affecting 5,00,000 travellers and significantly impacting the company's stock value.
The airline's monopolistic kind of dominance in the market has raised concerns about the concentration of power in the aviation sector. With IndiGo holding a 65.6% market share and its closest competitor, Air India Group, holding 25.7%, the industry operates as a near-duopoly.
In markets where competition is limited, consumers often face higher prices, poorer service, and increased risks of operational failures. The IndiGo crisis serves as a reminder of these challenges, highlighting the need for regulatory measures to prevent excessive market concentration.
Similar patterns of corporate dominance are evident in other sectors of the Indian economy. For instance, Reliance Group's Jio holds 40.7% of the telecommunications market, while the Adani Group controls over 20% of India's ports capacity and is the largest airport operator with a 23% market share in passengers.
Viral Acharya, a former deputy governor at the Reserve Bank of India, noted that the top 5 conglomerates accounted for nearly 18% of total assets in the non-financial sector in 2021, up from 10% in 1991.
Read More: IndiGo Share Price in Focus as Moody’s Flags Revenue Risks Amid Flight Disruptions!
As of December 10, 2025, at 11:19 AM, InterGlobe Aviation share price on NSE was trading at ₹4,917.00 down by 1.02% from the previous closing price.
The IndiGo crisis underscores the risks associated with corporate dominance in key industries. It highlights the need for regulatory oversight to ensure a competitive market environment that benefits consumers and promotes industry stability.
Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.
Published on: Dec 10, 2025, 1:30 PM IST
Team Angel One
We're Live on WhatsApp! Join our channel for market insights & updates
Get the link to download the App
