Warning bell: In 60% of routes it operates, IndiGo has monopoly

The recent crisis at IndiGo, which caused a large number of flight cancellations daily since early last week, disrupted India’s entire aviation ecosystem, highlighting the airline’s dominant position in the sector. IndiGo’s outsized impact stems from its overwhelming share of India’s domestic aviation market: the carrier transports six out of every ten domestic passengers and is widely considered “too big to fail.” Its influence extends far beyond its approximately 65% market share by passenger volume, making it the largest airline in the country and giving it a near-monopoly over many domestic routes.

India’s aviation sector is essentially a duopoly, with the Air India group holding about 26.5% of the domestic market as of October 2025. Despite this, IndiGo operates a majority of the routes in the country, many of which are monopoly routes where only IndiGo’s aircraft fly. In total, India has roughly 1,200 domestic routes, with IndiGo operating over 950 of them. Nearly 600 of these routes, or 63%, are monopoly routes, while about 200 (21%) are duopoly routes where IndiGo has only one competitor, according to aviation analyst and former network planner Ameya Joshi. While the government’s Regional Connectivity Scheme (RCS) routes are often designed as monopoly routes, IndiGo’s monopoly routes exist independently of the RCS, with Alliance Air dominating government-supported routes.

IndiGo’s dominance is not entirely by design but largely a result of the inability of other domestic airlines to compete effectively. Over the past two decades, several Indian airlines have collapsed, including notable examples such as Go First and Jet Airways. The failure of these competitors has left IndiGo in a unique position to dominate, ensuring that many domestic routes remain operational, which might otherwise have been shut down. Despite its dominance, IndiGo had long set high standards for operational efficiency and safety, maintaining an unblemished safety record in an Indian aviation sector that has often faced operational and regulatory challenges.

The airline’s market concentration makes the domestic aviation sector highly susceptible to disruptions at IndiGo. When the crisis unfolded, the cancellation of multiple flights created a ripple effect, affecting passengers, airport operations, and ancillary services across the country. This demonstrated not only IndiGo’s critical role in India’s aviation network but also the vulnerability of a market heavily reliant on a single carrier.

IndiGo’s strong position in both monopoly and duopoly routes reflects broader structural trends in India’s aviation industry. The combination of market dominance, high operational efficiency, and the failure of smaller competitors has enabled the airline to control a significant portion of domestic air travel. While this concentration ensures continuous operation of many routes and contributes to network stability, it also raises concerns about competition, fare pricing, and passenger choice.

In conclusion, the IndiGo crisis underscored both the airline’s vital role in India’s aviation ecosystem and the systemic risks associated with market concentration. Its dominance across 950+ domestic routes, including monopoly and duopoly operations, highlights how critical the airline is to maintaining connectivity. Simultaneously, the collapse of competing carriers over the years has inadvertently strengthened IndiGo’s hold, making it the central player in India’s domestic aviation. The airline’s established benchmarks for operational efficiency and safety demonstrate its leadership, yet the recent disruptions also reflect the challenges and vulnerabilities of an industry reliant on a single dominant carrier.