CCI seeks detailed responses from IndiGo, DGCA over December disruption

India’s competition watchdog has initiated a detailed preliminary examination into the recent operational disruptions faced by IndiGo, amid concerns that the country’s largest airline may have engaged in unfair business practices during a period of widespread flight cancellations and service instability.

The Competition Commission of India (CCI) has sought extensive information from both IndiGo and the Directorate General of Civil Aviation (DGCA) to assess whether the airline abused its dominant market position at a time when thousands of passengers were affected by large-scale schedule disruptions in December.

IndiGo, which currently controls over 63% of India’s domestic aviation market, encountered severe operational challenges in early December, leading to the cancellation of thousands of flights across multiple routes. The disruptions triggered widespread passenger inconvenience, fare volatility and mounting regulatory scrutiny before operations gradually stabilised.

In response to the crisis, the DGCA had imposed a 10% cut on the airline’s winter flight schedule and conducted a separate investigation into the causes of the cancellations. The civil aviation regulator had also intensified oversight on the airline’s operations following the incident.

Now, the CCI has stepped in to evaluate whether the airline’s conduct during this period had broader implications for market competition and consumer welfare.

According to sources familiar with the development, the competition regulator has issued a detailed questionnaire to IndiGo, seeking explanations on its operational decisions, pricing behaviour and overall conduct during the disruption phase. The DGCA has also been asked to furnish data related to airfare trends and market conditions to help the CCI assess whether there were abnormal price movements or potential exploitation of market dominance.

As part of its established regulatory process, the CCI will first carry out a prima facie assessment to determine whether there is sufficient preliminary evidence of a violation under the Competition Act, 2002. If such an opinion is formed, the matter will be formally referred to the commission’s Director General for a comprehensive investigation.

In IndiGo’s case, the inquiry will focus on whether the airline abused its dominant position in the domestic aviation market, a violation that could attract regulatory penalties if proven.

On December 18, the CCI confirmed that it had taken cognisance of information submitted against IndiGo in connection with the disruptions. In an official statement, the commission said it had decided to proceed further based on its initial review.

“Based on the initial assessment, the Commission has decided to proceed further in the matter in accordance with the provisions of the Competition Act, 2002,” the CCI said.

A day later, CCI Chairperson Ravneet Kaur reiterated the regulator’s stance, stating that the matter warranted deeper examination. “We have information which has come to us, and based on that information, the matter was placed before the commission. The commission has taken a view that in the initial assessment, it looks like we can go into further detail,” she said.

The development adds to mounting regulatory scrutiny on India’s largest airline, as authorities seek to ensure fair competition, consumer protection and market stability in an aviation sector increasingly dominated by a few major players.