The Competition Commission of India (CCI) has initiated a thorough investigation into IndiGo following allegations of unfair business practices. IndiGo, holding a dominant position in India’s domestic aviation market with over 65% share, faced scrutiny after cancelling numerous flights due to operational issues. The CCI highlighted that the abrupt withdrawal of a significant portion of IndiGo’s scheduled flights during the busy holiday season may have artificially created a shortage, limiting consumer access to air travel.
The CCI’s 16-page order emphasized that IndiGo’s mass flight cancellations were tantamount to withholding services from the market. This move impacted more than 10.4 lakh passengers in December, with over 93% of those affected being IndiGo customers. The airline’s disruptions led to chaos at airports, with thousands of passengers stranded and a substantial number of flights cancelled or delayed.
The sudden scarcity of flights triggered a surge in ticket prices across other airlines as passengers sought alternative travel arrangements. To curb this, the government intervened by imposing distance-based caps on airfares. The CCI, responding to complaints and concerns about IndiGo’s conduct, is investigating whether the airline abused its dominant market position, potentially violating the Competition Act. The watchdog has instructed its investigative unit to conclude the probe within 90 days.
