IndiGo's Legal Quagmire: A Deep Dive into Competition, Passenger, and Safety Issues
The Competition Commission of India (CCI) has initiated a probe into IndiGo, marking the latest in a series of legal troubles for the airline. This investigation stems from an operational crisis in early December 2025, when IndiGo cancelled hundreds of flights, stranding thousands of passengers and triggering widespread scrutiny.
CCI Investigation into Alleged Abuse of Dominance
The CCI's order was prompted by a complaint from passenger Kartikeya Rawal, whose flight from Delhi to Bengaluru was cancelled on December 4, 2025. Rawal alleged that IndiGo, while failing to provide alternate arrangements, offered seats on other flights at significantly higher fares, forcing him to pay Rs 17,000 for a rescheduled flight two days later. He accused the airline of abusing its dominant position under the Competition Act, 2002, by imposing unfair prices and creating artificial scarcity.
IndiGo defended itself by arguing that the CCI lacks jurisdiction, citing the Bharatiya Vayuyan Adhiniyam, 2024, and the Aircraft Rules, 1937, which grant the Directorate General of Civil Aviation (DGCA) exclusive authority over airfare regulation. However, the CCI rejected this, clarifying that while the DGCA handles sectoral regulations like safety, it does not conduct competition law analyses such as market definition or dominance assessment. Relying on a 2019 Supreme Court judgment, the CCI asserted that sectoral regulation does not immunize entities from competition law.
The CCI noted IndiGo's dominant position in the domestic air passenger transport market, with DGCA data showing a 63% market share in FY 2024-25 and operation as the sole carrier on over 330 routes in late 2025. By cancelling thousands of flights during peak demand, IndiGo allegedly withheld services, creating artificial scarcity and violating the Competition Act. The CCI has directed its director general to investigate and report within 90 days.
Delhi High Court Addresses Passenger Compensation
Simultaneously, a Division Bench of the Delhi High Court, led by Chief Justice D K Upadhyaya, is hearing a Public Interest Litigation (PIL) petition seeking refunds and support for affected passengers. The court criticized the Centre and DGCA for inaction before the crisis and highlighted surge pricing by other airlines exploiting IndiGo's cancellations.
The bench directed IndiGo to adhere to a 2010 DGCA circular on compensation, emphasizing that it should cover not just ticket costs but also the "agony" caused to passengers. Chief Justice Upadhyaya remarked on December 10, 2025, urging compensation for those stranded for weeks, including damages for suffering. IndiGo has been asked to file an affidavit detailing refunds and compensation, with the next hearing scheduled for February 25.
Pilot Fatigue and Safety Norms Under Scrutiny
Another PIL challenges the DGCA's relaxation of pilot fatigue norms, filed by a former aircraft engineer, a crew resource management trainer, and a social worker. The petition focuses on Flight Duty Time Limitations (FDTL), which mandate a 48-hour weekly rest period for pilots to recover from fatigue.
On December 5, 2025, the DGCA withdrew a rule prohibiting the substitution of leave for weekly rest, allowing airlines to count personal leave toward safety breaks. Additionally, the DGCA granted IndiGo a temporary exemption until February 10, permitting up to six night landings per shift (defined as midnight to 5 am for IndiGo pilots), compared to the standard cap of two landings between midnight and 6 am.
The petitioners argue that this "illegal dilution" of safety rules increases accident risks and have also sought to ban the use of the "low cost airline" label, claiming it lacks statutory definition and is used to deny basic passenger facilities. The High Court questioned the DGCA's indefinite withdrawal of the rest clause, noting its direct link to passenger safety, and issued notices to the DGCA and IndiGo on January 28. Replies are due within two weeks from January 30.
IndiGo's legal battles highlight critical issues in India's aviation sector, from competition law and passenger rights to safety standards, as the airline navigates this multifaceted crisis.
