Competition Law And Market Dynamics In India’s Aviation Sector

Over the last two decades, India’s civil aviation sector has undergone a remarkable transformation, driven by economic liberalisation, increased private sector participation, growing passenger demand, and sustained investment in airport infrastructure. Today, India is recognised as one of the world’s fastest-growing aviation markets, supported by a rapidly expanding middle class, rising disposable incomes, and government initiatives aimed at strengthening regional and international connectivity. The sector’s growth has significantly improved connectivity, promoted trade and tourism, generated employment, and contributed to the country’s economic development. At the same time, the domestic airline industry has evolved into a highly concentrated market, where a limited number of airlines account for a substantial share of passenger traffic. Such a market structure is commonly described as an oligopoly.