The recent IndiGo disruption, which led to thousands of flight cancellations in December, offers an important warning for India’s telecom sector. The incident highlighted how excessive market concentration can magnify operational failures, leaving consumers with limited alternatives and widespread inconvenience.
Near-Duopoly Market Structure:
India’s domestic aviation market is largely dominated by IndiGo with around 60 per cent market share and the Tata Group with nearly 26 per cent.
Fleet Concentration Risk:
IndiGo and the Tata Group together own close to 90 per cent of the total aircraft fleet in the domestic market, increasing systemic risk during disruptions.
IndiGo December Fiasco:
Large-scale cancellations during December exposed how failures at a dominant player can impact the entire ecosystem.
Lessons for Telecom Industry:
Similar market concentration in telecom could lead to service instability, weak competition, and reduced consumer choice.
Need for Balanced Competition:
A healthier market with multiple strong players improves resilience, service quality, and customer protection.