CCI to investigate IndiGo over recent flight disruptions across routes

IndiGo had grounded thousands of flights across the country after being unprepared for stricter safety norms, which came into effect in November

The Competition Commission of India will launch an inquiry into IndiGo airline, based on information filed against the company after recent flight disruptions, according to a statement issued by the Commission.

 

“CCI has taken cognizance of Information filed against IndiGo in the context of the recent flight disruptions witnessed in the aviation sector, across various routes," it said in a press statement. 

The antitrust watchdog added that "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 first conducts a preliminary inquiry based on the information received. Based on the findings, it directs the Director General office to start a formal investigation. 

Section 4 of the Competition Act prohibits abuse of dominant position. The Act does not prohibit dominance itself, but exploiting such a position through unfair or predatory pricing can attract penalties by the Commission. 

“Since information has been filed, the CCI will first need to take a prima facie view on whether IndiGo’s role warrants a detailed investigation by the Director General… It will look at factors such as IndiGo’s access to airport slots, scale, and market presence, while keeping in mind the practical realities of the aviation sector, including route-level competition, high operating costs, and intense price pressure,” said Aniket Ghosh, partner, King Stubb & Kasiva, Advocates and Attorneys. 

IndiGo cancelled as many as 4,200 flights between December 1 and 9, as it failed to manage its pilot duty roster after the Directorate General of Civil Aviation (DGCA) fully implemented new, stricter rest and duty regulations in November, which increased weekly rest requirements and reduced the hours pilots can fly at night. Disruptions peaked on December 5.

 

IndiGo drew criticism for inadequate preparation for revised rest and duty requirements, which led to aircraft being grounded and travel plans being disrupted.

 

Before the crisis, IndiGo operated around 2,300 flights per day — about 2,000 domestic and 300 international.

 

On December 9, the DGCA asked IndiGo to cut 10 per cent of its domestic flights for the entire winter season to help stabilise operations.

 

A day later, the airline lowered its capacity and passenger unit revenue outlook for the third quarter after scaling back its winter schedule.