Competition Watchdog Launches Investigation Into IndiGo's Market Conduct
The Competition Commission of India (CCI) has directed a comprehensive investigation into IndiGo's business practices, alleging potential abuse of dominant market position. This development comes approximately two months after the airline experienced widespread flight cancellations due to non-compliance with flying time regulations.
Dominant Position in Aviation Market
In a detailed 16-page order published on its official website, the regulatory authority highlighted IndiGo's commanding presence in India's domestic aviation sector. The commission noted that the carrier maintains exclusive operations on 330 distinct routes and has consistently captured between 60% and 61% of the market share. Furthermore, IndiGo operates a fleet exceeding 400 aircraft, substantially larger than its closest competitor, Air India, which manages approximately 191 planes.
According to Directorate General of Civil Aviation (DGCA) statistics from 2025, IndiGo controlled 64% of the domestic passenger market. The Air India group followed with 27%, while Akasa Air held 5.1%, and other smaller airlines accounted for the remaining 3.9%.
Passenger Complaint Triggers Regulatory Action
The investigation stems from a formal complaint filed by Bengaluru resident Kartikeya Rawal, whose December 5 flight was unexpectedly canceled. Rawal alleged that alternative flight options were available only at significantly higher prices, characterizing this as "abuse of dominance" by the airline. IndiGo has contested these allegations while simultaneously challenging the CCI's jurisdiction in the matter.
Market Concentration and Consumer Impact
The commission expressed concern about the high and increasing concentration within India's domestic passenger aviation market. The regulatory body observed that leading firms, particularly IndiGo, appear to possess the capability to operate independently of competitive pressures due to constrained effective rivalry.
"By canceling thousands of flights representing a substantial portion of scheduled capacity, IndiGo effectively withdrew services from the market," the order stated. "This created artificial scarcity during peak demand periods, limiting consumer access to air travel options."
Limited Alternatives for Affected Passengers
The CCI order further detailed how passengers faced limited recourse following flight cancellations. Travelers were left with no practical alternatives but to accept last-minute disruptions or independently seek other options at premium prices. Given IndiGo's dominant market position, consumers found themselves effectively locked in without viable alternatives, potentially violating competition regulations.
The commission concluded that such conduct by a dominant enterprise could reasonably be viewed as restricting service provision and potentially causing appreciable adverse effects on competition within India. Accordingly, the CCI determined that sufficient grounds exist to warrant a detailed investigation into possible contraventions of competition law provisions.
