What Happened
- India's aviation sector faces a reckoning as a series of operational failures and safety incidents have exposed systemic vulnerabilities at IndiGo and Air India, the two airlines that together dominate Indian skies.
- In December 2025, IndiGo — which holds roughly two-thirds of India's domestic market share — suffered mass flight cancellations due to pilot shortages and software glitches, stranding over 500,000 passengers and wiping out approximately Rs 33,600 crore (USD 4.7 billion) in market value.
- The Civil Aviation Ministry disclosed that 377 aircraft across six scheduled carriers were flagged for repetitive technical defects between January 2025 and early February 2026; Air India Group had 191 of 267 audited planes (~72%) marked for recurring issues.
- Industry profits have declined and passenger dissatisfaction has risen, even as new regional airlines prepare to enter the market, raising questions about whether the regulatory framework can keep pace with growth.
Static Topic Bridges
Directorate General of Civil Aviation (DGCA) — India's Aviation Regulator
The DGCA is India's apex civil aviation regulator, functioning under the Ministry of Civil Aviation. It derives its authority from the Aircraft Act, 1934, and the Aircraft Rules, 1937. The DGCA oversees aircraft certification, airworthiness, licensing of pilots and engineers, airport operations, and safety oversight. However, unlike independent regulators such as the FAA (United States) or EASA (European Union), the DGCA lacks statutory autonomy — it operates as an attached office of the Ministry, without independent recruitment or budgetary powers.
- Statutory basis: Aircraft Act, 1934 (Section 4A grants DGCA regulatory authority; Act last amended in 2020)
- The DGCA has 2,745 vacant posts across civil aviation regulatory and safety bodies, with 787 vacancies in the DGCA itself
- The government has proposed converting the DGCA into a Civil Aviation Authority (CAA) modelled on the FAA, with independent administrative and financial powers
- International oversight: DGCA is subject to ICAO (International Civil Aviation Organization) Universal Safety Oversight Audit Programme (USOAP)
Connection to this news: The recurrent safety defects flagged across Indian carriers and the operational collapse at IndiGo underscore the DGCA's capacity constraints — inadequate manpower, limited autonomy, and bureaucratic delays in enforcement — which have been long-standing criticisms of India's aviation safety oversight.
Bharatiya Vayuyan Adhiniyam, 2024 (Replacing the Aircraft Act, 1934)
Parliament passed the Bharatiya Vayuyan Vidheyak, 2024, which received Presidential assent on 11 December 2024, replacing the 90-year-old Aircraft Act, 1934. The new law empowers the DGCA to regulate not only the manufacture, repair, and maintenance of aircraft but also their design and design locations, positioning India as a "State of Design" under ICAO conventions. It also consolidates the Radio Telephone Operator certification process under DGCA (previously under the Department of Telecom), creating a single-window clearance system.
- Replaces the Aircraft Act, 1934 (enacted during British rule, last amended 2020)
- Empowers DGCA to regulate aircraft design — expanding its role from "State of Manufacture" to "State of Design"
- Consolidates regulatory functions for single-window clearance
- Critics note the Bill does not grant the DGCA full financial and administrative autonomy needed for effective safety regulation
Connection to this news: While the new Act modernises the legal framework, the aviation crises of 2025-2026 demonstrate that legislative reform alone is insufficient without operational reforms — adequate staffing, real-time safety monitoring systems, and genuine regulatory independence.
National Civil Aviation Policy, 2016 and UDAN Scheme
The National Civil Aviation Policy (NCAP) 2016 was India's first comprehensive civil aviation policy, aimed at making flying accessible to the common citizen and boosting regional connectivity. Its flagship initiative is the UDAN (Ude Desh Ka Aam Naagrik) scheme, launched on 21 October 2016, which uses Viability Gap Funding (VGF) and fare caps to incentivise airlines to operate on regional routes connecting Tier-2 and Tier-3 cities.
- UDAN 1.0 (2017): 128 routes awarded, connecting 70 airports including 36 newly operationalised
- UDAN 2.0 (2018): Extended to helipads; UDAN 3.0 (2019): Tourism routes, seaplane operations; UDAN 4.0 (2020): Hilly regions, island territories
- India is now the world's third-largest aviation market with 174 million passengers in 2024
- Target: 300 million passengers by 2030; market projected to grow from USD 14.78 billion (2025) to USD 26.08 billion (2030) at 12% CAGR
Connection to this news: India's rapid aviation growth — driven by NCAP 2016 and UDAN — has outpaced the development of regulatory capacity, safety infrastructure, and trained personnel, creating the systemic vulnerabilities now exposed by the IndiGo and Air India crises.
Key Facts & Data
- IndiGo market share: approximately 66% of India's domestic aviation market
- IndiGo market value erosion (Dec 2-9, 2025): approximately Rs 33,600 crore (USD 4.7 billion), a 15% decline
- Aircraft flagged for repetitive defects (Jan 2025 - Feb 2026): 377 aircraft across six carriers
- Air India Group: 191 of 267 audited planes (~72%) flagged for recurring defects; IndiGo: 148 of 405 analysed
- DGCA vacancies: 2,745 across civil aviation bodies; 787 in DGCA alone
- India's aviation market: third-largest globally; 174 million passengers (2024)
- Bharatiya Vayuyan Adhiniyam, 2024: Presidential assent on 11 December 2024, replacing the Aircraft Act, 1934