Shares of InterGlobe Aviation, the parent company of IndiGo, fell nearly 4% in early trade on Thursday after the Competition Commission of India (CCI)
ordered a detailed investigation into alleged unfair business practices by the airline. The stock slipped 3.65% to ₹4,782.45 on the BSE, while on the NSE it declined 3.63% to ₹4,780.30, as investors reacted to the heightened regulatory scrutiny. CCI Flags Possible Abuse of Dominant Position The CCI on Wednesday directed its Director General to conduct a full probe into IndiGo’s conduct following mass flight cancellations nearly two months ago. The cancellations, triggered by operational disruptions, had caused widespread inconvenience to passengers and raised concerns about market behaviour in India’s aviation sector. After examining airline data and inputs from aviation regulator DGCA, the competition watchdog said there is a prima facie case suggesting IndiGo may have abused its dominant market position. Alleged Market Restriction In its 16-page order, the CCI noted that IndiGo cancelled a substantial number of flights, accounting for a significant portion of its scheduled capacity. The regulator observed that this could have created artificial scarcity, limiting consumer access to air travel—particularly during peak demand periods. Such conduct, the CCI said, may amount to restricting services under Section 4(2)(b)(i) of the Competition Act, which deals with abuse of dominance. Impact on Competition Under Scrutiny The regulator further stated that IndiGo’s actions may have caused an appreciable adverse effect on competition in the aviation market. The Director General has now been tasked with carrying out a detailed investigation and submitting its findings. The outcome of the probe could have regulatory and financial consequences for the airline, depending on the conclusions reached.
