India aviation sector faces safety and regulatory challenges

India's aviation sector, the world's third-largest domestic market, is facing significant challenges regarding safety, regulation, and financial stability. Major carriers Air India and IndiGo, which together control approximately 90 percent of domestic seat capacity, have been at the center of recent concerns.

A recent Air India flight from Phuket, Thailand, to New Delhi experienced a sudden altitude drop of approximately 300 feet, resulting in injuries to 24 passengers. Following the incident, reports emerged suggesting the captain may have tested positive for marijuana use. In response, Air India has initiated a one-time special substance screening for all its pilots.

Industry experts, including Mark Martin of Martin Consulting, have noted that 2025 and 2026 have been particularly difficult years for the sector's global reputation and credibility. Beyond safety concerns, the industry is grappling with rising costs driven by geopolitical events and a lack of competition within the domestic market.