The Competition Commission of India (CCI) on Wednesday ordered a detailed probe on IndiGo for abusing its dominant position in the aviation sector and causing an appreciable adverse effect on competition in India. The CCI order said that by cancelling thousands of flights in December 2025, IndiGo effectively withheld its service from the market, creating an artificial scarcity, and limiting consumer access to air travel during the peak demand.
“IndiGo cancelled hundreds of flights, causing heavy surge in prices of seats across sectors as well as huge inconvenience to passengers. The aforesaid brings out widespread inconvenience caused to travelers at large due to sudden and massive cancellation of flights with little or no alternatives available. The passengers were left stranded with severely limited options, while fares escalated sharply following the cancellation of 2,507 flights and delays in 1,852 flights, thereby affecting more than three lakh passengers across various airports,” the order stated.
60% market share under lens
While ordering the probe, CCI observed that IndiGo has a significant market share in the aviation sector – both in terms of absolute passenger numbers carried, and the available seat kilometres (ASKM) passenger capacity.
“IndiGo consistently accounts for approximately 60-61% of total domestic ASKM, which reflects not only passenger volumes but effective control over market capacity and supply-side conditions. 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,” the order said.
IndiGo cites DGCA jurisdiction
In its defence, IndiGo told the antitrust regulator that this case is squarely covered under the Bhartiya Vayuyan Adhiniyam, 2024 and the Aircraft Rules, 1937, under which the sector regulator DGCA (Directorate General of Civil Aviation) has exclusive jurisdiction to deal with matters raised by CCI. Further, IndiGo argued that the fixation of airfares is subject to continuous regulatory oversight and intervention by the Ministry of Civil Aviation and the DGCA, including imposition of fare ceilings and pricing norms in the public interest, thereby demonstrating that airfare regulation squarely lies within the regulatory domain of the DGCA.
However, CCI maintained that the aviation sector has never been treated as immune from the application of competition law merely on account of being subject to regulatory supervision by the DGCA. “The commission also observes that it has, in the past, examined matters pertaining to the aviation sector involving allegations of cartelisation, abuse of dominant position and unfair pricing practices. Sectoral regulation and competition law operate in distinct but complementary domains, each addressing different regulatory objectives,” the order noted.
The probe against IndiGo was ordered following a complaint by a Bengaluru lawyer who informed CCI that his return flight was cancelled by IndiGo a few hours before the scheduled departure time, and the airline failed to provide an alternate travel arrangement. When the informant tried to book alternate flight, it was observed IndiGo (and other airlines) offered seats at a much higher fare than the usual fare on the same sectors.
The regulator has directed the director general (DG) to determine the violation of Sections 4(2)(a)(i) and 4(2)(b)(i) of the Competition Act, and submit its report within 90 days.