CCI Orders Probe into IndiGo Over Alleged Unfair Business Practices
India’s aviation sector is under regulatory scrutiny after the Competition Commission of India (CCI) ordered a detailed investigation into alleged unfair business practices by IndiGo. The decision comes nearly two months after the airline carried out large-scale flight cancellations following non-compliance with mandated pilot flying time norms.
The regulator has formed a prima facie view that IndiGo holds a dominant position in India’s domestic passenger aviation market and that certain actions taken by the airline may have adversely impacted both consumers and competition.
Why the CCI Ordered the Investigation
The case originated from a complaint filed by a Bengaluru-based passenger whose flight scheduled in early December last year was abruptly cancelled. According to the complaint, while alternative flights were available, they were offered only at significantly higher fares. The passenger alleged that this amounted to overcharging enabled by IndiGo’s dominant market position.
IndiGo challenged the allegations and also questioned whether the competition regulator had jurisdiction over the matter. However, the CCI rejected this argument at the preliminary stage and ordered a comprehensive probe.
Market Dominance Under the Lens
In its detailed order, the CCI highlighted several factors supporting its view that IndiGo enjoys a dominant position in the relevant market. These include its consistently high market share, extensive route network, and significantly larger fleet size compared to competitors.
- 64% domestic market share in 2025
- Exclusive operations on over 330 routes
- Fleet size of more than 400 aircraft
By comparison, the Air India group accounted for around 27% of the domestic market with a fleet of approximately 191 aircraft. Smaller carriers such as Akasa and other regional airlines together held less than 10% market share.
Concerns Over Flight Cancellations
The regulator took a serious view of IndiGo’s decision to cancel thousands of flights, which represented a substantial portion of scheduled capacity. According to the CCI, this move may have effectively reduced supply in the market during periods of high demand.
The order observed that such cancellations could create an artificial scarcity of seats, limiting consumer access to air travel. For passengers with existing bookings, last-minute cancellations left little choice but to either accept refunds or book alternative flights at much higher prices.
Impact on Passengers and Competition
The CCI noted that IndiGo’s dominant position meant passengers were effectively “locked in” and lacked viable alternatives when disruptions occurred. This situation, the regulator said, could amount to restricting the provision of services and may have caused an appreciable adverse effect on competition in India.
As a result, the Commission concluded that there is sufficient ground to believe that provisions of competition law may have been violated, warranting a deeper investigation by its Director General.
What This Means for the Aviation Sector
The probe is being closely watched by investors and industry participants, as it could have wider implications for pricing practices, capacity management, and consumer protection in India’s rapidly consolidating aviation market. Any adverse findings could lead to penalties or directives that may influence how airlines manage operations during disruptions.
For now, the investigation marks a significant regulatory intervention in the airline industry, reinforcing the message that market dominance comes with added responsibility toward consumers and fair competition.
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