Aviation monopoly dangerous, break IndiGo into 2 entities: Cong leader

Former Union minister Prithviraj Chavan of the Congress on Monday said the growing monopoly in the aviation sector poses a "serious threat" to economy and affects passenger interest, and demanded crisis-hit IndiGo be split into two companies to ensure fair competition.

 

Talking to reporters here, Chavan noted only two major players now dominate India's air travel -- IndiGo with 65 per cent market share and the Tata Group (Air India and AI Express) with nearly 30 per cent pie.

 

"In 2004, India had 10 functional airlines, but today only two big companies are left. Nearly 40 crore passengers and just two airlines -- this situation will become more serious in the future," the former Maharashtra Chief Minister cautioned.

 

Calling the current crisis at IndiGo, which has seen widespread flight disruptions over the last one week, "unfortunate and shocking", the Congress leader maintained the situation was a result of regulatory lapses and alleged collusion between the government and private airlines.

 

Chavan sought the resignation of Union Civil Aviation Minister Rammohan Naidu, suspension of the IndiGo CEO, and dismissal of Directorate General of Civil Aviation (DGCA) officials responsible for the lapses.

 

"Monopoly in the aviation sector is dangerous for the country," he insisted, adding the government should not allow the entire sector to be controlled by private players.

 

To ensure fair competition in the aviation sector, the former Union minister suggested splitting the leading domestic carrier into two companies and capping their market share at 30 per cent each.

 

"The government must not allow the entire aviation sector to fall into private hands. It should start a national airline of its own," the Congress leader suggested.

 

Chavan renewed his demand for the implementation of the Civil Aviation Authority proposed during the previous Congress-led UPA regime (2004-14), in which he was a minister, to strengthen oversight and accountability in the key sector.

 

He demanded setting up of a special compensation fund of Rs 1,000 crore to help passengers who suffered losses due to overpriced tickets and mass disruptions at IndiGo.

 

Chavan claimed the Competition Commission has "completely failed" to prevent monopolistic control and demanded its dissolution and replacement by a new empowered body.