PolitySource: The Hindu
Challenges and Developments in India's Aviation Sector
Thursday, 12 February 2026
Read Original ArticleKey Points
India's aviation sector is significant yet structurally overstretched, with demand growth outpacing institutional capacity. A duopoly controls nearly 90% of the market, increasing systemic risk. Key challenges include pilot shortages, regulatory gaps, and fuel volatility. Without coordinated reform, rapid expansion may lead to operational crises.
Detailed Coverage
- Global Ranking: 3rd-largest domestic aviation market.
- Passenger Traffic Growth: Expected to reach 715 million by 2030.
- Airport Expansion: Aiming for 350-400 airports by 2047.
- Economic Contribution: Supports over 7.7 million jobs and contributes 1.5% of GDP.
- Air Corporations Act, 1953: Nationalized nine airlines.
- Open Sky Policy (1990-94): Ended monopoly of Indian Airlines.
- New Regulation: The Bharatiya Vayuyan Adhiniyam, 2024 aligns with international standards.
- Training Bottlenecks: Pilot supply constrained by simulator and trainer shortages.
- Market Concentration: IndiGo and Air India dominate 90% of traffic.
- Low Shock Absorption: Near-total crew utilization leads to operational failures.
- Weak Regulation: Half of DGCA's posts are vacant.
- High Operating Costs: Affected by volatile ATF prices.
- Recurring Failures: Multiple airline collapses highlight vulnerabilities.
- Aviation Safety Risks: Rising traffic and safety violations raise concerns.
- New Regional Airlines: Shankh Air, Al Hind Air, and FlyExpress aim to improve connectivity.
- Measures for Strengthening: Focus on structural reforms and regulatory capacity.
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