India's Aviation Market: Need for a Data Framework
IndiGo, India's largest airline, encountered an operational crisis in December 2025, causing a surge in fares, which highlighted the need for a robust data framework as India emerges as the world's third-largest aviation market.
Current Regulatory Approach and Challenges
- The Ministry of Civil Aviation imposed temporary price caps on domestic flights during the crisis.
- The Directorate General of Civil Aviation (DGCA), following the Competition Commission of India's prompt, requested fare data from major airlines to investigate potential market dominance abuse.
- The absence of a systematic data framework makes it difficult to differentiate between demand-driven spikes and potential market abuse.
Comparison with the U.S. Model
India could benefit by adopting the U.S. Bureau of Transportation Statistics (BTS) model, which collects airline data through the DB1B database, publishing ticket-level data for a 10% random sample of domestic tickets sold each quarter since 1995.
Benefits of a Similar Data Framework in India
- Transparency: It would encourage airlines to self-regulate their pricing algorithms, maintaining market hygiene.
- Historical Data Access: Enables the analysis of competitive behavior, similar to the "Southwest Effect" in the U.S.
- Policy Formation: Supports research and policy-making based on solid data.
Challenges and Solutions
- Proprietary Information Concerns: A 10% random sample protects the proprietary logic of algorithms while monitoring ticket prices.
- Technical Load: Supplying this sample should not create a significant technical burden.
- Immediate Fare Alignment: Quarterly data release can reduce immediate fare alignment risks.
Conclusion
The DGCA should transition from reactive measures to a proactive data-centric approach, allowing algorithms to compete while enabling regulatory oversight and public awareness.
Author's Note: The views expressed are personal and contributed by Prerna Rakheja, an Antitrust and Competition Economist.
