India’s aviation boom faces turbulence amid safety concerns

India's booming aviation industry is facing turbulence due to safety concerns and regulatory shortcomings, according to a recent report. The country, once hailed by Prime Minister Narendra Modi as a symbol of rising stature, is now grappling with crises at its two main carriers, Air India and IndiGo. These airlines, together holding nine out of every ten domestic airline seats, have been marred by safety lapses and lapses in regulatory oversight.

A series of incidents, including a recent mid-air plunge by an Air India flight from Thailand to New Delhi, has exposed the lack of competition and the need for improved safety culture. The latest incident sparked scrutiny after reports that the captain tested positive for marijuana upon landing, leading to a one-time drug screening of all pilots. Additionally, an earlier Air India crash in London claimed the lives of 241 people, further highlighting the sector's safety issues.

The safety culture at Air India is described as "lax," with many reporting a lack of genuine commitment to safety. This lax approach has been exacerbated by mounting financial pressures, including the closure of Pakistani airspace due to geopolitical tensions and rising jet fuel prices. Indian airlines are expected to lose nearly $4 billion this fiscal year, with Air India's losses more than doubling to $2.3 billion in the last fiscal year, while IndiGo has reported losses for two consecutive quarters.

The challenges also extend to expansion plans, with IndiGo recently shutting down its wide-body operations and Air India reportedly considering delays in the delivery of up to 500 aircraft. This reversal of fortunes comes as a stark contrast to the sector's earlier celebration as one of India's biggest success stories. Indian airlines carried about 167 million passengers last year, more than double the figure a decade earlier, and over 70 airports have been added over the past decade.

Industry experts argue that the problem lies not in a lack of growth but in the inability of the ecosystem to keep up with this rapid expansion. They point to the dominance of the two major carriers as a regulatory failure, with the DGCA (Directorate General of Civil Aviation) acting more like a facilitator than a regulator. The duopoly of Air India and IndiGo has made it harder for regulators to penalize the two remaining airlines.

The government has recognized these issues, with recent plans to attract new carriers and potentially relax rules on airport operators owning airlines. However, attracting investors alone will not solve the sector's problems. The high cost structure remains a primary reason for the lack of breakthroughs in the industry.