New Delhi, Feb 5 (PTI): Shares of InterGlobe Aviation, the parent company of IndiGo, fell nearly 4 per cent in early trade on Thursday after the Competition Commission of India (CCI) ordered a detailed investigation into alleged unfair business practices linked to mass flight cancellations.

The stock declined 3.65 per cent to ₹4,782.45 on the BSE and slipped 3.63 per cent to ₹4,780.30 on the NSE.

CCI flags impact of cancellations during peak travel period

The CCI’s order follows the cancellation of thousands of flights by IndiGo in December, which caused widespread inconvenience to passengers during a peak demand period. The regulator has raised concerns over possible abuse of market dominance and unfair conduct affecting consumer access to air travel.

After examining data related to airline operations and inputs provided by aviation regulator DGCA, the CCI formed a prima facie view that IndiGo may have abused its dominant position in the domestic aviation market.

‘Artificial scarcity’ created, says competition watchdog

In its 16-page order, the CCI observed that the large-scale cancellations constituted a significant portion of the airline’s scheduled capacity, effectively withdrawing services from the market.

“This reduction in supply created an artificial scarcity during a time of high travel demand, limiting consumer choice and access to air travel,” the commission noted.

“Such conduct by a dominant enterprise may be viewed as restricting the provision of services under Section 4 (2) (b)(i) of the Act,” the regulator said.

Section 4 of the Competition Act deals with abuse of dominant position.

DG to conduct detailed investigation

Citing a prima facie adverse effect on competition in India, the CCI has directed its Director General (DG) to conduct an in-depth investigation to determine whether competition law was violated and whether corrective measures are required.

Scale of disruption highlighted by DGCA data

According to data from the Directorate General of Civil Aviation (DGCA), more than 10.46 lakh passengers across all domestic airlines were affected by flight cancellations in December. IndiGo alone accounted for 9.82 lakh affected passengers, underlining the scale of disruption.

The airline reportedly spent ₹22.74 crore on passenger facilitation measures such as refunds, rebooking, meals and accommodation.

Dominant market share under scrutiny

IndiGo currently holds over 65 per cent of India’s domestic airline market. In comparison, the Air India Group accounts for 29.6 per cent, Akasa Air 5.2 per cent, while SpiceJet and Alliance Air hold much smaller shares.

Given this dominant position, the commission stressed the airline’s responsibility to ensure fair market conduct and uninterrupted services, particularly during high-traffic seasons.

DGCA action and wider operational concerns

Separately, the DGCA took action against IndiGo for operational lapses in December, imposing fines totalling ₹22.20 crore and directing the airline to furnish a bank guarantee of ₹50 crore to ensure long-term systemic improvements.

The regulator also issued formal warnings to IndiGo CEO Pieter Elbers and two other senior executives, signalling heightened regulatory scrutiny.

In addition to cancellations, flight delays affected 8.34 lakh passengers in December, with airlines collectively spending another ₹4.50 crore on passenger facilitation.

Broader implications for aviation sector

The outcome of the CCI investigation is expected to have significant implications for how airlines manage capacity, cancellations and market conduct in India. It may also set an important precedent for competition law enforcement in sectors dominated by a single major player.