CCI to probe IndiGo over alleged abuse of dominance after disruptions in Dec

India’s competition watchdog has ordered a detailed investigation into IndiGo, alleging that the country’s largest airline may have abused its dominant market position by cancelling thousands of flights, triggering widespread disruption for passengers.

In a 16-page order issued on Wednesday, the Competition Commission of India (CCI) said it had reached a prima facie view that IndiGo’s conduct amounted to an abuse of dominance under the Competition Act, following a complaint filed by a passenger affected by the cancellations in early December.

The CCI observed that IndiGo’s large-scale flight cancellations — which formed a substantial share of its scheduled capacity — effectively withdrew services from the market during a period of high demand. According to the regulator, this had the effect of creating an artificial scarcity of air travel options and restricting consumer access.

“Such conduct by a dominant enterprise may be viewed as restricting the provision of services,” the commission noted, referring to provisions under Section 4 of the Act, which deals with abuse of a dominant position.

For the purposes of the case, the watchdog defined the relevant market as domestic air passenger transport services in India. After analysing data from airlines and submissions from the Directorate General of Civil Aviation (DGCA), the CCI concluded that the market is highly concentrated and becoming increasingly so.

The regulator pointed out that IndiGo consistently accounts for around 60–61 per cent of total domestic available seat kilometres (ASKM), a metric that reflects not only passenger volumes but also effective control over capacity and supply-side conditions. Such a sustained share, it said, indicates an ability to operate independently of competitive pressures, with rival airlines facing material constraints.

On the basis of its substantial and enduring market share, extensive route network — including exclusive operations on several city-pair routes — a comparatively larger fleet and strong financial performance, the CCI said IndiGo appears to enjoy a dominant position in the domestic aviation market.

The commission has now directed its Director General to conduct a detailed investigation, noting that the airline’s actions may have caused an appreciable adverse effect on competition in India.

IndiGo had challenged the CCI’s jurisdiction in the matter, arguing that aviation falls under sectoral regulation. However, the watchdog rejected this claim, citing a Supreme Court ruling to underline its authority.

Quoting the judgment, the CCI said that even if a sectoral regulator were to find conduct anti-competitive, its powers would be limited to action under its own statute. “It is only CCI which is empowered to deal with the same anti-competitive act from the lens of the Competition Act,” the order said.

The commission also addressed the role of the DGCA, noting that while the aviation regulator oversees licensing, safety and operational supervision, it does not conduct competition law analysis, such as defining markets, assessing dominance or evaluating harm to competition.

IndiGo faced severe operational disruptions in early December, prompting the DGCA to impose a 10 per cent cut on the airline’s winter schedule until 10 February. Between 3 and 5 December alone, 2,507 flights were cancelled and 1,852 were delayed, affecting more than 300,000 passengers across airports nationwide.

Although IndiGo has dominated domestic air traffic for months with a market share exceeding 63 per cent, its share dipped to 59.6 per cent in December amid the disruption.

With PTI inputs