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Summary
The recent Indigo Airlines disruptions caused widespread chaos for passengers—but the deeper and less-discussed impact fell on India’s cargo and supply chain ecosystem. From pharma spoilage to perishables going to waste, the fallout exposed how over-dependence on a single dominant player can destabilise entire industries. This incident offers critical lessons for businesses, policymakers, and supply-chain leaders on diversification, risk planning, and operational resilience.
Indigo Disruptions Reveal Hidden Supply Chain Vulnerabilities
Indigo’s operational failures resulted in severe delays and cancellations, affecting not only flyers but also significant volumes of cargo.
Indigo’s dominance—with over 30% market share—meant that when the airline stumbled, the impact cascaded across multiple sectors:
- Pharma shipments spoiled as temperature-sensitive consignments sat stranded
- Perishable goods (fruits, flowers) suffered wastage with no belly-cargo capacity available
- Courier and express parcels faced days of uncertainty
- Domestic supply chains collapsed, forcing businesses to suddenly shift to road or rail transport
Indigo disruptions also caused global cargo delays, highlighting how interconnected India’s air logistics network has become.
Supply Chain Fragility Exposed by Overdependence
Supply chains faltered largely because the market was too dependent on one airline. This raises important questions:
- Why don’t more businesses seize opportunities when markets turn into monopolies or duopolies?
- Why do consumers and corporates overlook early warning signs—like pilot fatigue concerns raised by the DGCA?
- Why do passengers remain unconcerned about safety risks tied to operational overstretching?
Such disruptions act as a wake-up call for industries relying heavily on a single service provider.
Learnings: Diversification Is No Longer Optional
Learnings from this fiasco echo global trade best practices. Industries must embrace diversification, much like:
- Indian marine exports, which found growth by reducing dependence on the US
- China’s grain import strategy, which avoids relying on any single origin
Businesses must internalize the importance of spreading risk rather than concentrating it.
Lessons: Planning, Alternatives, and Operational Readiness
Lessons from this crisis underscore the need for proactive business strategy:
- Develop Plan B alternatives—much like sports teams adapt when the original strategy fails
- Maintain additional staff capacity to handle disruptions; idle staff can become lifesavers
- Prioritize emergency plans that ensure continuity when unforeseen events strike
- Accept that markets change quickly—giants like Kodak, Nokia, or Jet Airways once dominated but failed due to complacency
A business must decide: should it lose customers due to insufficient capacity, or carry additional cost to ensure reliability?
Markets Change—Complacency Is Dangerous
Markets with high dominance often create a false sense of stability. The Indigo case shows clearly:
- Even with massive market share, no business can take customers for granted
- Repeated requests for “more time to comply” are red flags—whether from corporations or governments
- Reliability is a strategic asset, not a given
Businesses that fail to prepare for disruptions ultimately pay a higher price.
Conclusion
Indigo’s crisis was not just an aviation issue—it was a supply chain warning. For businesses across sectors, the lesson is unmistakable: never rely on a single player, always plan alternatives, and build resilience into operations. Markets evolve, disruptions are inevitable, and preparedness is the only sustainable competitive advantage.