CCI dismisses complaint against IndiGo and Air India over ticket cancellation charges

The Competition Commission of India (CCI) has dismissed a complaint alleging that InterGlobe Aviation and Air India abused their dominant positions in the domestic aviation market through unfair ticket cancellation charges and pricing practices.

The complaint had accused domestic airlines of levying “unconscionable” cancellation fees and imposing arbitrary conditions on the sale of airline services. The complainant argued that such practices were anti-competitive and harmful to consumers.

However, after reviewing the submissions and relevant market details, the competition watchdog said it found no prima facie evidence of violations under the country’s competition laws.

According to the complaint, IndiGo, operated by InterGlobe Aviation, holds more than 65% share of the domestic aviation market. Air India, now part of the Tata Group, was estimated to account for around 27 per cent market share.

Together, the two airlines were said to control nearly 90% of the domestic market, raising concerns in the complaint about possible abuse of dominance and anti-competitive conduct.

The complainant alleged that airlines were charging excessive cancellation fees while providing limited flexibility to passengers, and sought intervention by the regulator.

In its order, the commission observed that airlines offer multiple fare categories to passengers, including options with varying levels of refund flexibility.

Passengers who opt for certain ticket categories can receive substantial refunds upon cancellation, the regulator noted.

CCI also pointed out that airlines disclose cancellation charges and refund policies in advance at the time of booking, enabling passengers to make informed decisions.

The regulator further emphasised that these policies apply uniformly to all customers and do not appear to discriminate between consumers.

“In view of the information provided, the Commission is of the opinion that no prima facie case of contravention of Sections 3 and 4 of the Act is made out against the opposite parties,” the CCI said in its order.

Accordingly, the complaint was closed under Section 26(2) of the Competition Act, which allows the commission to dismiss cases where no initial evidence of violation is found.

Sections 3 and 4 of the Competition Act deal with anti-competitive agreements and abuse of dominant position, respectively. The complainant had also sought to combine the case with another matter related to mass flight cancellations by IndiGo in December 2025, requesting a joint investigation.

However, the commission rejected the request, stating that the issues involved in the two cases were entirely different in nature.

According to the regulator, the mass flight cancellation case pertains to operational disruptions, whereas the present complaint concerned ticket cancellation fees and pricing practices. Therefore, there was no justification to merge the proceedings or initiate a combined investigation.