Challenges in India's Civil Aviation Sector
The past year has been turbulent for India's civil aviation sector, marked by several failures impacting major players like IndiGo and the Air India group.
Key Incidents and Failures
- Significant incidents included the June 2025 Ahmedabad crash and mass cancellations due to prolonged delays.
- The December IndiGo disruption acted as a critical stress test, highlighting systemic vulnerabilities.
System Constraints and Regulatory Challenges
- New regional players have received No Objection Certificates (NOCs), but without structural corrections, their presence may not ease operational strain.
- India is the world's third-largest domestic market, operating over 840 aircraft and transporting over 350 million passengers annually.
- IndiGo's pilot-to-aircraft ratio of 14 is below the global benchmark of 18–20, contributing to operational strain.
- The Flight Duty Time Limitation (FDTL) framework restricts night operations and increases rest periods, challenging existing schedules.
Pilot and Training Deficiencies
- India needs 7,000 new pilots by 2026, with a long-term need of 25,000-30,000, yet only 5,700 Commercial Pilot Licenses were issued between 2020 and 2024.
- Issues include trainer shortages, simulator constraints, and high training costs, leading to reliance on foreign crew.
Regulatory and Market Concentration Issues
- The Directorate General of Civil Aviation (DGCA) faces staffing shortages, with half of the technical positions vacant.
- IndiGo and Air India group control nearly 90% of the domestic market, making IndiGo a systemically significant carrier.
- Operational issues at IndiGo lead to direct loss of connectivity on 60.4% of routes.
New Entrants and Regional Connectivity
- Three regional airlines — Shankh Air, Al Hind Air, and FlyExpress — aim to improve connectivity.
- The UDAN scheme has operationalized 625 routes and 85 airports, but many Tier-2 and Tier-3 cities remain underserved.
Past Failures and Market Conditions
- Failures of carriers like Paramount Airways, Kingfisher Airlines, and Jet Airways were attributed to cost competition and infrastructural limits.
- ATF price volatility poses a risk, linked to the U.S. dollar, affecting airline operational costs.
Safety Concerns and Future Prospects
- The DGCA issued 19 safety violation notices in late 2025 for breaches of FDTL norms and operational lapses.
- Indian carriers' near-total utilization leaves little room for error, necessitating structural reforms to prevent recurring crises.
Overall, India's aviation sector faces significant challenges that require urgent attention to prevent future crises and ensure sustainable growth.
