Publication

This paper analyzes the promotion of competition in the Indian civil aviation sector, with a particular focus on the political economy of several key reform events. It discusses the conflict of interest present as the government acts as a regulator arbitrating between the government-owned and private carriers, and notes that the ruling party or coalition and its ideology can shape the pace of sector reform. The paper divides its analysis into four periods: 1953-1986 when the government had a near-total monopoly; 1991-1994 during the balance of payments crisis; 1994-1999 with progress in reforms; and finally 1998-2004 when the National Democratic Alliance Coalition attempted to initiate independent regulation.