CCI orders antitrust probe against IndiGo for abuse of dominant position

Competition watchdog cites large-scale flight cancellations and market dominance as it directs DG to submit probe report within 90 days

The Competition Commission of India (CCI) has ordered an investigation into the country’s largest airline, IndiGo, after finding prima facie evidence that it abused its dominant market position, according to an order issued by the antitrust watchdog on Wednesday. The Commission, following its preliminary inquiry, said the airline appeared to have caused an appreciable adverse effect on competition by restricting its services. 

Earlier, on December 18, 2025, the CCI said in a brief statement that it had taken cognizance of information filed against IndiGo in connection with widespread flight disruptions across multiple routes between December 1 and 9. 

In its order, the Commission noted that by cancelling thousands of flights, representing a significant proportion of its scheduled capacity, IndiGo had effectively withheld services from the market. This, it said, created an artificial scarcity and limited consumer access to air travel during a period of peak demand. 

“Such conduct by a dominant enterprise may be viewed as restricting the provision of services under Section 4(2)(b)(i) of the Act,” stated the CCI in its 16-page order. 

The Commission said that, given IndiGo’s dominant position, consumers were effectively locked in and lacked viable alternatives, a situation that appeared to violate provisions of the Competition Act. 

The CCI has directed the office of the director general (DG) to submit an investigation report within 90 days of receiving the order. 

The order records IndiGo’s submission that the Competition Act does not empower the Commission to examine the adequacy or effectiveness of sectoral regulatory frameworks. The airline argued that “any intervention by the Commission in matters falling within the exclusive remit of the DGCA (Directorate General of Civil Aviation) would amount to an impermissible assumption of jurisdiction”. 

IndiGo cancelled more than 4,200 flights between December 1 and 9. The disruption was triggered by the airline’s failure to manage its pilot duty roster after the DGCA fully implemented stricter rest and duty regulations last month. The new rules increased weekly rest requirements and reduced the number of hours pilots can fly at night. 

In its order, the competition watchdog cited data on all domestic airlines, including passenger numbers, market share and available seat kilometres for the financial years 2023-24 and 2024-25, to establish that IndiGo was a significant player in the market. 

“The domestic passenger aviation market exhibits very high and increasing concentration, exhibiting that leading firms possess the ability to operate independently of competitive forces, as the presence of effective rivals is materially constrained,” said the Commission. 

The CCI also noted that IndiGo’s substantial presence on high-density and revenue-critical routes pointed to significant economic strength and extensive network coverage across key city pairs. The DGCA had provided the Commission with details of routes operated exclusively by IndiGo for September, October and November 2025. 

The Commission said IndiGo’s exclusive operations across a substantial number of city pairs demonstrated extensive network coverage combined with limited competitive presence in a significant segment of the market. “Such structural presence on a large number of monopoly routes constitutes a relevant indicator of market power,” according to the order. 

The DGCA had also furnished the CCI with year-wise revenue details of airline operators from 2021-22 to 2024-25. 

The CCI initiated its preliminary inquiry following a complaint from an informant, a Bengaluru-based consumer, who described a personal experience of having to book a ticket at a significantly higher price of ₹17,000, compared with the original cost of ₹7,173, because of flight cancellations. 

Earlier, the civil aviation regulator, on December 9, had directed IndiGo to cut 10 per cent of its domestic flights for the entire winter season in an effort to stabilise operations. Before the crisis, the airline was operating about 2,300 flights a day, including roughly 2,000 domestic services and 300 international flights.

 

Nearly 1 mn affected by IndiGo cancellations in Dec

 

More than 1.46 million passengers were affected by flight cancellations in December, with over 93 per cent of the total passengers getting impacted by IndiGo cancellations.

 

The latest data shared by the civil aviation regulator showed that scheduled domestic airlines shelled out over ₹24.27 crore towards compensation and facilities for flight cancellations last month.

 

Flight cancellations by IndiGo impacted 982,000 passengers in December and the airline spent ₹22.74 crore towards facilitation.

 

The overall cancellation rate of scheduled domestic airlines was 6.92 per cent in December, and that of IndiGo was 9.65 per cent.

 

IndiGo, the country’s largest airline, faced massive flight disruptions in early December and during that month, its market share fell to 59.6 per cent from 63.6 per cent in November.

 

During December, a total of 29,212 passenger-related complaints had been received by the scheduled domestic airlines and the number of complaints per 10,000 passengers carried was at around 20.41, according to the Directorate General of Civil Aviation (DGCA).

 

According to DGCA data, flight delays impacted 834,000 passengers and airlines spent ₹4.50 crore towards facilitation in December.

 

In December, as many as 2,050 passengers were denied boarding by the airlines, which cost them ₹2.08 crore towards compensation and facilitation. [PTI]