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What is the story about?
The Competition Commission of India (CCI) has ordered a detailed investigation into IndiGo over allegations that the airline abused its dominant position during large-scale flight disruptions in December 2025.
In an order dated February 4, the CCI said a prima facie case was made out against InterGlobe Aviation Ltd, which operates IndiGo, for contravention of Sections 4(2)(a)(i) and 4(2)(b)(i) of the Competition Act, 2002. The watchdog has directed its Director General to complete the probe within 90 days.
The case (No. 44 of 2025) was initiated based on information filed by Bengaluru resident Kartikeya Rawal, who alleged that IndiGo cancelled hundreds of flights in early December 2025 and subsequently charged excessive fares, leaving passengers with few viable alternatives.
According to the complaint, Rawal’s return flight on the Delhi-Goa-Bengaluru sector on December 5, 2025 was cancelled just hours before departure, without any alternate arrangement. When he attempted to rebook, he found IndiGo fares on the same sector to be significantly higher than usual. He eventually flew two days later on another IndiGo flight, paying ₹17,000 compared with the original fare of ₹7,173.
The CCI noted that the incident was not isolated. It referred to widespread disruptions between December 3 and 5, 2025, during which 2,507 flights were cancelled and 1,852 delayed, affecting over three lakh passengers nationwide. The Ministry of Civil Aviation later imposed a penalty of ₹22.2 crore on IndiGo for the disruptions.
IndiGo had challenged the CCI’s jurisdiction, arguing that matters relating to airfare pricing and flight cancellations fall exclusively under the Bharatiya Vayuyan Adhiniyam, 2024 and the Aircraft Rules, 1937, and are overseen by the Directorate General of Civil Aviation (DGCA). The airline also contended that consumer grievances should be addressed under sectoral or consumer protection laws, not competition law.
Rejecting these arguments, the CCI held that sectoral regulation does not oust its jurisdiction. Citing Supreme Court precedents, the Commission said competition law and aviation regulation operate in “distinct but complementary domains.” It also relied on the DGCA’s own submission that it does not have economic regulatory powers over airfares or competition issues.
The Commission defined the relevant market as domestic air passenger transport services in India and found that IndiGo holds a dominant position, with around 60-63% market share by passenger numbers and seat capacity in recent financial years. It also noted that IndiGo operates exclusively on over 330 domestic routes and is the only major airline to report sustained profitability.
According to the CCI, large-scale cancellations by a dominant airline can create artificial scarcity, restrict consumer choice and enable excessive pricing, potentially harming competition.
The Commission clarified that its findings are preliminary and that the investigation will be conducted independently. IndiGo has not yet commented on the order.
In an order dated February 4, the CCI said a prima facie case was made out against InterGlobe Aviation Ltd, which operates IndiGo, for contravention of Sections 4(2)(a)(i) and 4(2)(b)(i) of the Competition Act, 2002. The watchdog has directed its Director General to complete the probe within 90 days.
The case (No. 44 of 2025) was initiated based on information filed by Bengaluru resident Kartikeya Rawal, who alleged that IndiGo cancelled hundreds of flights in early December 2025 and subsequently charged excessive fares, leaving passengers with few viable alternatives.
According to the complaint, Rawal’s return flight on the Delhi-Goa-Bengaluru sector on December 5, 2025 was cancelled just hours before departure, without any alternate arrangement. When he attempted to rebook, he found IndiGo fares on the same sector to be significantly higher than usual. He eventually flew two days later on another IndiGo flight, paying ₹17,000 compared with the original fare of ₹7,173.
The CCI noted that the incident was not isolated. It referred to widespread disruptions between December 3 and 5, 2025, during which 2,507 flights were cancelled and 1,852 delayed, affecting over three lakh passengers nationwide. The Ministry of Civil Aviation later imposed a penalty of ₹22.2 crore on IndiGo for the disruptions.
IndiGo had challenged the CCI’s jurisdiction, arguing that matters relating to airfare pricing and flight cancellations fall exclusively under the Bharatiya Vayuyan Adhiniyam, 2024 and the Aircraft Rules, 1937, and are overseen by the Directorate General of Civil Aviation (DGCA). The airline also contended that consumer grievances should be addressed under sectoral or consumer protection laws, not competition law.
Rejecting these arguments, the CCI held that sectoral regulation does not oust its jurisdiction. Citing Supreme Court precedents, the Commission said competition law and aviation regulation operate in “distinct but complementary domains.” It also relied on the DGCA’s own submission that it does not have economic regulatory powers over airfares or competition issues.
The Commission defined the relevant market as domestic air passenger transport services in India and found that IndiGo holds a dominant position, with around 60-63% market share by passenger numbers and seat capacity in recent financial years. It also noted that IndiGo operates exclusively on over 330 domestic routes and is the only major airline to report sustained profitability.
According to the CCI, large-scale cancellations by a dominant airline can create artificial scarcity, restrict consumer choice and enable excessive pricing, potentially harming competition.
The Commission clarified that its findings are preliminary and that the investigation will be conducted independently. IndiGo has not yet commented on the order.
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