Advanced International Journal for Research

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Volume 7 Issue 2
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Grounded or Soaring? Legal Dynamics of Competition in the Indian Aviation Market

Author(s) Shreyas Srinivas, Prof. BABITHA N S
Country India
Abstract In many ways, the civil aviation industry in India has changed from a monopoly controlled by the government to one of the fastest-growing in the world. However, there have been some significant obstacles to this evolution, among them being those related to regulatory overlap and competition law. This study challenges the widely held belief that the aviation industry is actually "soaring," instead investigating whether long-standing structural and regulatory issues still choke the industry. A critical analysis of the basic legal frameworks governing competition within Indian aviation reveals a landscape held by complexity. High barriers to entry and market concentration pushes towards limiting people's choices and putting less competition upfront in the market.
The Competition Commission of India has taken action on multiple fronts, addressing instances of alleged fare collusion and confirmed cartelization within cargo fuel surcharges. Sector-specific regulations like Rule 135 of the Aircraft Rules allow the Directorate General of Civil Aviation to intervene in predatory pricing and oligopolistic conduct cases. This duality that exists in jurisdiction results in regulatory overlaps, raising questions about the entire idea of oversight. The recent mergers and market exit that have taken place have moved the market towards a duopolistic structure. This trend is a threat to the consumers, who may face rise of prices, reduced service quality and a drop in options. Only through measures that push for competition and prevents oversight, can industry's growth be translated into genuine welfare, innovation and true competition.
Keywords Indian Aviation, Oligopoly, Cartel, Competition Commission, Competition Law.
Field Sociology > Administration / Law / Management
Published In Volume 7, Issue 2, March-April 2026
Published On 2026-03-10
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E-ISSN 3048-7641
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