Ex-Finance Minister Chidambaram flags duopoly amid IndiGo flight chaos

Former Union Finance Minister and senior Congress leader P Chidambaram has described the ongoing IndiGo flight cancellations as a consequence of a duopoly in India’s aviation sector, warning about the dangers of limited competition in a developing economy.

In a post on X on Saturday, Chidambaram backed Leader of Opposition in Lok Sabha Rahul Gandhi, who has repeatedly criticised monopoly and duopoly business models. “Mr Rahul Gandhi was spot on when he said that the monopoly/duopoly model is ill-suited for a developing country,” Chidambaram tweeted.

He highlighted that duopoly is common across many sectors of the Indian economy, including aviation. “Liberalisation and an open economy are based on competition. Absent competition, there will be baneful consequences as we are witnessing now in the airline industry,” he added.

Chidambaram urged people to reflect on how a once-vibrant and competitive airline industry in India was reduced to a two-player business, asking both how and why this situation emerged.

The disruption at IndiGo has left hundreds of passengers stranded nationwide. The airline cited crew shortages and difficulties implementing new pilot duty-hour regulations as the primary causes for cancellations. After the Air India crash, many travelers had shifted to IndiGo, leaving passengers with few alternatives when flights were cancelled. Experts say that with only Air India and IndiGo dominating fares, schedules, and services, the system remains vulnerable to such large-scale disruptions.

In response, the Ministry of Civil Aviation placed the Directorate General of Civil Aviation’s Flight Duty Time Limitations (FDTL) orders in abeyance to stabilise schedules without compromising safety. Airlines have been instructed to provide real-time updates, issue automatic refunds, and arrange hotel accommodation for stranded passengers. Full restoration of services is expected within the next three days.

The government has also announced a high-level inquiry to investigate what went wrong, assign accountability, and recommend measures to prevent future disruptions.

Chidambaram and other critics argue that India needs a truly competitive aviation sector, with more private and regional airlines. A diversified market would prevent dependency on just two carriers, ensure better fares and services for passengers, and reduce the impact of operational disruptions.

The IndiGo crisis highlights the fragility of a duopoly and underscores the need for competition to sustain a robust and resilient airline industry in India.