IndiGo Faces CCI Scrutiny Over Alleged Exploitative Pricing After Mass Flight Cancellations

The Competition Commission of India (CCI) has sought information from IndiGo Airlines as part of an ongoing probe triggered by allegations of abuse of dominance, Business Standard reported, citing sources familiar with the matter.

Focus on alleged exploitative pricing

The inquiry is expected to examine whether the airline engaged in exploitative practices that may have caused widespread consumer inconvenience, particularly through sharp fare increases following recent flight disruptions. Under the Competition Act, abuse of dominance can take the form of either exclusionary or exploitative conduct, with the IndiGo case likely to focus on the latter.

Consumer complaint flags steep fare hike

A consumer complaint submitted to the regulator described

a personal experience of having to book a ticket at nearly two-and-a-half times the original fare after flights were cancelled, the report noted. While the informant’s experience forms part of the information received, the CCI’s assessment is expected to focus on broader consumer impact rather than an isolated incident.

“If the company is restricting supply and subsequently raising prices, it becomes an issue under Section 4 of the Competition Act,” sources told Business Standard. Section 4 prohibits abuse of a dominant market position. While the law does not bar dominance itself, exploiting such a position through unfair or predatory pricing can attract penalties from the Commission.

The antitrust regulator is not expected to examine matters related to Flight Duty Time Limitation (FDTL), which fall under the jurisdiction of the Directorate General of Civil Aviation (DGCA), the report added.

The CCI is likely to begin with a preliminary assessment based on the information received. Depending on its findings, the Commission may direct its Director General’s office to initiate a detailed investigation, as reported by Business Standard.

IndiGo had cancelled more than 4,200 flights between December 1 and 9. The disruption was linked to challenges in managing pilot duty rosters after the DGCA enforced stricter rest and duty norms last month, including higher weekly rest requirements and reduced night flying hours, the report said.