(INDIA) India can support five large airlines and must move beyond the current duopoly in its skies, Civil Aviation Minister K. Rammohan Naidu told the Rajya Sabha on December 8, 2025, setting out one of the clearest policy signals yet that the government wants more players in the market after IndiGo’s recent operational crisis. Speaking during a discussion on the state of the aviation sector, he said the country’s fast‑growing passenger demand and expanding airport network give room for more big carriers, and he warned that over‑reliance on a small number of airlines leaves both travelers and the wider economy exposed.
Market concentration and recent disruption
Naidu said IndiGo and the Air India Group together hold about 91% of the market share, a level of concentration that has effectively turned India’s domestic skies into a duopoly. While he stopped short of calling this unhealthy in itself, he stressed that:
“India has the capacity to sustain five big airlines,” and the government wants more competition to improve resilience.
His statement follows weeks of disruption linked to IndiGo, where an operational breakdown led to more than 2,000 flight cancellations, stranding passengers across the country and highlighting the risks when one dominant carrier runs into trouble.
Opportunity for new entrants
The minister described the crisis as creating the “best time to start an airline,” arguing that new entrants could:
- Reduce pressure on existing networks
- Provide alternatives when a major operator faces operational problems
- Improve connectivity to underserved regions
This message was directed at both large corporate groups and regional players looking to grow, reflecting a broader government effort to extend air connectivity to smaller cities and towns. The aim is to ensure students, migrant workers, business travelers, and families are not left vulnerable by limited options and sudden cancellations.
Policy tools and targeted support
To back this strategy, Naidu pointed to new laws and schemes rolled out in recent years to grow India’s aviation footprint. Central among them is UDAN, a government programme designed to improve regional air connectivity by supporting flights to underserved and remote airports.
Under UDAN, officials have focused on expanding airport networks and routes to make it easier for small and start‑up airlines to enter the market. Naidu named carriers such as Fly 91, Star Air, and India 1 Air as examples of newer or smaller operators the government wants to see grow into stronger competitors.
How UDAN and related measures help
- Expand airport infrastructure and route networks
- Provide a platform for emerging airlines to build fleets and experience
- Encourage private investment into tier‑2 and tier‑3 cities
Intended benefits of diversifying carriers
Naidu said these steps aim to make the sector more stable over time by spreading passenger traffic across more carriers instead of concentrating it with two big players. Expected benefits include:
- More choice on busy trunk routes
- Better links to tier‑2 and tier‑3 cities
- Stronger local economies through tourism and trade
- Reduced risk of widespread cancellations and fare spikes when one carrier fails
According to analysis by VisaVerge.com, such structural shifts can also affect connectivity to international flights, influencing decisions about work, study, and family relocation.
Safety and regulatory oversight
Naidu emphasized that the push for more airlines will not come at the cost of safety or basic reliability. He pledged the ministry’s commitment to strict regulatory oversight and promised to take:
“very, very strict action” against airlines that fail to follow safety or operational rules.
The ongoing probe into IndiGo’s disruptions is intended to signal that growth and competition must go hand in hand with strong compliance. Although no timeline was given for the investigation, the promise of tough action will be closely watched by passengers and smaller airlines hoping for even-handed enforcement.
Wider debate and stakes for passengers
The IndiGo episode has ignited wider debate about market concentration in India’s aviation sector. With one private low‑cost giant and the state‑backed Air India Group dominating domestic routes, lawmakers and industry watchers worry that shocks at either carrier could propagate rapidly through the system.
Consequences seen during the disruption included:
– Travelers paying higher last‑minute fares on alternatives
– Missed overseas connections, medical appointments, and family events
– Highlighted need for real backup choices for everyday passengers
Naidu’s call for five large airlines is thus framed not only as a commercial objective but as a consumer‑protection measure.
Signals for investors and future entrants
The minister’s remark that this is the “best time to start an airline” can be read as a political green light to investors considering new ventures. It suggests the ministry is open to supporting viable business plans that help de‑risk the system.
At the same time, the warning of “very, very strict action” on safety and operations sends a clear message: any new carrier must be prepared for close regulatory scrutiny. Balancing encouragement for entry with firmness on regulation will shape how quickly India can move from a duopoly to a more plural market.
Tests ahead
Observers will watch several indicators to see if Naidu’s vision translates into lasting change:
- Whether regulatory decisions make it easier for well‑run new entrants to secure routes and airport slots.
- Whether enforcement of penalties on operators that cut corners is consistent.
- Whether UDAN and related policies continue to expand in ways that draw private investment without leaving smaller cities stranded if market conditions change.
Where to find official information
Official information on India’s civil aviation policies and schemes is available through the Ministry of Civil Aviation’s website, which sets out government programmes and regulatory frameworks for airlines and airports in the country.
Reminder: Diversifying connectivity helps reduce disruption risk. When choosing carriers or routes, consider tier-2/3 city links and backup options beyond the current duopoly to stay resilient.
The ministry’s handling of Naidu’s call for more competition — and its response to the recent disruptions — will help decide whether India’s skies remain dominated by a duopoly or move towards the five large airlines the minister says the country can sustain.
Minister K. Rammohan Naidu urged expansion beyond India’s current aviation duopoly, saying the country can sustain five large airlines. He cited IndiGo and Air India Group’s combined 91% market share and IndiGo’s crisis with over 2,000 cancellations as reasons to support new entrants. The government will use UDAN and infrastructure expansion to help regional and smaller carriers while maintaining strict safety oversight and enforcement to ensure competition does not compromise standards.
