IndiGo Under Scrutiny: Competition Commission Launches Investigation into Flight Cancellations

Investigation Launched Against IndiGo

New Delhi: The Competition Commission of India (CCI) has initiated a comprehensive investigation into IndiGo, following allegations of unfair business practices. This decision comes shortly after the airline faced significant operational challenges, leading to the cancellation of thousands of flights.

In a detailed 16-page directive, the CCI highlighted that IndiGo's mass flight cancellations represented a substantial portion of its scheduled services, effectively creating an artificial scarcity and restricting consumer access to air travel during peak periods.

The regulator noted, "Such actions by a dominant player may be interpreted as limiting service availability under Section 4(2)(b)(i) of the Competition Act."

Section 4 addresses the abuse of a dominant market position.

The CCI observed that the airline's actions appear to have a significant negative impact on competition within the Indian market, prompting the need for an in-depth investigation by its Director General.

In early December, IndiGo experienced severe operational disruptions, leading the Directorate General of Civil Aviation (DGCA) to reduce the airline's winter schedule by 10% until February 10.

Between December 3 and 5, the airline canceled 2,507 flights and delayed 1,852, affecting over 300,000 passengers at various airports nationwide, as stated by the regulator on January 20.