BUSINESS

India needs five 100-aircraft airlines to prevent future crises, minister states

2 min read
India needs five 100-aircraft airlines to prevent future crises, minister states
India's Aviation Minister says five 100-aircraft airlines are crucial after IndiGo's operational meltdown.

Key Points

  • 1Indian Civil Aviation Minister K. Ram Mohan Naidu called for India to establish at least five airlines, each with around 100 aircraft, to prevent future aviation crises.
  • 2The demand follows IndiGo's recent operational meltdown, which stranded thousands and highlighted India's over-reliance on one or two dominant carriers.
  • 3Minister Naidu blamed IndiGo's chaos on internal mismanagement and incorrect crew rosters, expressing government dissatisfaction with the airline's response.
  • 4The government is analyzing price gouging, reviewing travel vouchers, and considering action against senior management if negligence is proven.

Indian Civil Aviation Minister K. Ram Mohan Naidu has emphasized the urgent need for India to establish at least five airlines, each operating approximately 100 aircraft. This strategic move aims to fortify the nation's aviation sector against future crises, drawing lessons from IndiGo's recent widespread operational meltdown that stranded thousands of passengers. Naidu characterized the disruption as a "structural warning," asserting that India's air travel system cannot rely on just one or two dominant carriers.

Minister Naidu directly attributed the chaos to gross mismanagement within IndiGo, citing issues such as incorrect crew rosters and internal operational failures. He stated that the airline bore sole responsibility for the network collapse. Furthermore, Naidu expressed government dissatisfaction with IndiGo's leadership, noting that key public concerns remained unaddressed despite continuous communication. He specifically mentioned that the IndiGo chairman's video statement failed to answer many critical questions.

The Indian government is actively scrutinizing various aspects of the crisis, including allegations of price gouging by airlines as fares surged during the disruption. Officials are also evaluating the adequacy of travel vouchers offered by IndiGo and investigating potential unfair pricing practices. Addressing criticism regarding the delayed capping of airfares, Naidu explained that the ministry required careful assessment before intervention. While acknowledging legal and procedural limitations concerning the removal of a private airline CEO, Naidu indicated that action would be considered if negligence or senior management's inability were conclusively proven to have caused the crisis.

Positioning the IndiGo incident as a pivotal moment, Naidu reiterated the government's commitment to reducing market concentration. The goal is to ensure the country's aviation infrastructure is not overly dependent on a few carriers, thereby preventing future monopolies or duopolies and enhancing overall resilience for passengers.

Topics

IndiGo CrisisIndian AviationAirline CompetitionAviation PolicyK. Ram Mohan NaiduFlight Disruptions

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