India's antitrust regulator, the Competition Commission of India (CCI), has initiated a preliminary examination into the conduct of IndiGo, the country's largest airline. This move follows the widespread operational disruptions and thousands of flight cancellations that plagued the carrier in early December 2023.
Regulatory Scrutiny Intensifies for Market Leader
The CCI has formally sought information from both InterGlobe Aviation-owned IndiGo and the aviation sector regulator, the Directorate General of Civil Aviation (DGCA). The aim is to determine whether the airline, which commands a dominant 63% share of the domestic aviation market, indulged in unfair business practices by potentially abusing its market position.
Sources indicate that the CCI has sent a detailed set of queries to IndiGo as part of this initial assessment. Simultaneously, the watchdog has asked the DGCA for comprehensive data, including details on airfares, to build a clearer picture of the overall market conditions during the period of disruption.
From Operational Crisis to Competition Law Probe
The probe stems from the major operational crisis IndiGo faced at the start of December, which led to the cancellation of thousands of flights across its network before services eventually stabilised. In response to the chaos, the DGCA had curtailed IndiGo's approved winter schedule by 10% as a corrective measure.
While the DGCA has completed its own investigation into the operational failures, the CCI is now evaluating a separate angle: whether the airline's conduct violated competition norms. The Commission is checking for prima facie evidence of abuse of dominant position under the Competition Act, 2002.
On December 18, the CCI officially acknowledged that it had taken cognisance of information filed against IndiGo concerning the flight disruptions. It stated, "Based on the initial assessment, the Commission has decided to proceed further in the matter."
Next Steps and Official Statements
The next phase of the CCI's process will depend on the findings of this preliminary examination. If the regulator finds sufficient merit in the case, it can order a full-fledged, detailed investigation to be conducted by its Director General (DG).
Elaborating on the decision, CCI Chairperson Ravneet Kaur told PTI on December 19 that the regulator decided to examine the matter further based on the information available to it. She confirmed that the matter was placed before the commission, which took the view that the initial assessment warranted a deeper look.
The development marks a significant escalation in regulatory oversight for IndiGo, moving beyond operational safety and schedule compliance into the realm of market conduct and fair competition. The airline's response to the CCI's queries and the subsequent findings will be closely watched by the industry and consumers alike.
