Based on its initial assessment, the antitrust regulator will now decide whether to order a formal investigation against IndiGo under Section 4 of the Competition Act, which deals with abuse of dominant position. At this stage, the CCI has clarified that it is only examining whether the threshold for initiating an investigation is met.
The CCI said it will proceed in accordance with the provisions of the Competition Act, 2002, and any action, if warranted, will be taken only after the completion of a detailed investigation.
Read more: 'The worst is behind us': IndiGo CEO says airline back to normal operations
Under Section 4 of the Competition Act, the regulator has the power to impose a financial penalty of up to 10% of a company’s total revenues if abuse of dominance is established. In addition to monetary penalties, the CCI can also order structural remedies, including directing changes to business practices or removal of certain routes from an airline’s network, depending on the findings.
The development follows severe operational disruptions earlier this month, which led to widespread cancellations and delays across IndiGo’s network.
In a statement issued on Thursday, December 18, IndiGo said its operations have been fully normalised since December 9, after the airline stabilised its network starting with over 1,800 flights and adding capacity gradually.
The airline said it is now operating over 2,200 flights a day, flying to all 138 operational destinations, while maintaining normal on-time performance. It continues to serve over 3.5 lakh customers daily and remains "committed to delivering consistently reliable service," a company spokesperson said.
Further updates are awaited as the CCI takes a call on whether to order a formal probe.
