IndiGo’s post-cancellation fares trigger CCI inquiry into market dominance

New Delhi: The Competition Commission of India (CCI) has sought information from IndiGo Airlines as part of a preliminary inquiry into allegations that the carrier may have exploited its dominant position in India’s domestic aviation market, following widespread flight cancellations and sharp fare increases earlier this month.

Sources told Business Standard that the CCI is examining whether IndiGo’s post-cancellation fare hikes constituted exploitative practices, particularly when passengers had limited alternatives. Under Indian competition law, holding a dominant market position is not illegal, but using it to impose unfair prices or restrict supply may attract regulatory scrutiny under Section 4 of the Competition Act.

Passenger complaints highlight sharp price surges

A consumer complaint cited a passenger who had to rebook a flight at nearly 2.5 times the original fare after cancellations. While individual cases form part of the information, the CCI’s assessment will focus on the overall impact on consumers rather than isolated incidents.

Operational disruptions and cancellations

Between December 1 and 9, IndiGo cancelled over 4,200 flights due to operational challenges linked to the DGCA’s Flight Duty Time Limitation (FDTL) norms, which increased mandatory pilot rest and restricted night flying hours. The CCI’s probe is strictly limited to competition and pricing concerns, not safety or crew regulations.

Next steps for CCI

The regulator will conduct a preliminary review of the information gathered from IndiGo. If the allegations are found credible, the Director General’s office may initiate a detailed investigation into the airline’s practices and their impact on consumer choice and fare fairness.