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Air travel in the country was completely disrupted due to the cancellation of a large number of IndiGo flights in the last one week. There are about 600 routes (more than 60%) in the country where IndiGo has a complete monopoly.
Indigo Crisis: Due to problems in the flight operations of the country’s largest airline Indigo, flights were affected on a large scale in the last several days. When Indigo flights faltered, the entire aviation system was shaken. The reason is also shocking. In fact, IndiGo has a complete monopoly on 60% of India’s domestic routes, that is, only it has the right to fly on these routes. outcome? As soon as one company slipped, the entire country got stuck in delays, cancellations and chaos.
IndiGo’s dominance over the Indian aviation sector can be gauged from the fact that out of every 10 passengers flying in the country, 6 travel with IndiGo. There are a total of about 1,200 domestic routes in India, and IndiGo flies on more than 950 of these. Of these, there are about 600 routes (more than 60%) where IndiGo has a complete monopoly. There are about 200 routes where only IndiGo and one other airline fly.
Airlines like Jet Airways and Go First closed
This situation of the aviation sector has arisen because many airlines closed down in the last several years like Jet Airways and Go First. The result was that Indigo became the only strong player. During the crisis, it became clear how risky it could be for a single company to have such a large market share because if it fails, the entire system is affected.
At least 5 big airlines are needed
The government is also now believing that the country needs at least 5 big airlines in the future so that passengers get options and the market remains healthy. Experts say that big companies are necessary, but when someone’s hold becomes too strong, it becomes difficult for new companies to enter the market, which reduces competition and can increase prices.
Monopoly is increasing in many sectors
Not only in aviation, monopoly is also increasing in sectors like telecom, cement, steel. HHI index (a method of measuring market concentration) in aviation, telecom is above 1800, which shows high risk. The Indigo case is a warning to policy-makers that too much monopoly can prove dangerous for consumers, industry and the economy.
