IndiGo Cancellations Highlight Intense Competition in India's Airline Market

IndiGo, India's largest airline, recently faced significant operational disruptions, including mass flight cancellations attributed to crew shortages. This event has cast a spotlight on the highly competitive nature of the Indian aviation sector, as rival carriers swiftly responded to the sudden increase in passenger demand.

IndiGo maintains a dominant position with a 65% market share, operating a substantial fleet of 417 aircraft and over 2,200 daily flights across more than 90 domestic and 41 international destinations. In response to IndiGo's service interruptions, Air India Group, holding a 27% market share with a combined fleet of 302 aircraft, including its budget subsidiary Air India Express, introduced additional flights. Similarly, low-cost carrier SpiceJet, which commands a 2.5% market share with 19 operational aircraft, also augmented its flight schedule.

The Indian airline industry has historically been challenging, marked by the bankruptcies of several prominent carriers. Kingfisher Airlines ceased operations in 2012, followed by Jet Airways suspending services in 2019 and being liquidated in 2023. More recently, budget airline Go First filed for bankruptcy in May 2023 and was ordered into liquidation in January 2024, further underscoring the volatile operational environment despite the rapid growth of newer entrants like Akasa Air, which has quickly secured a 5% market share with 30 aircraft.