IndiGo faces CCI action for possible abuse of market dominance

India’s largest domestic airline, IndiGo, has come under the scanner of the Competition Commission of India (CCI) for potential violations of competition rules, even as the carrier grapples with regulatory scrutiny triggered by large-scale operational disruptions. 

According to a PTI report, the CCI is conducting an internal, suo motu examination to assess whether IndiGo may have abused its dominant position in the domestic aviation market. No formal complaint has been filed so far. 

Dominance, routes & possible abuse 

A senior official told PTI that the regulator will evaluate: IndiGo’s overall market dominance (now at over 65%), its dominance on specific routes, whether any behaviour amounts to abuse of dominance under Section 4 of the Competition Act 

Section 4 covers both: 

• Exploitative conduct, such as excessive pricing 
• Exclusionary conduct, including denial of market access 

Regulators emphasise that dominance alone is not anti-competitive — it becomes a violation only when accompanied by abuse. 

IndiGo has cancelled hundreds of flights since December 2, causing massive passenger inconvenience. While the airline claims operations are stabilising, the disruptions have prompted multiple layers of regulatory intervention.

The DGCA is separately probing the causes, with officials suggesting that poor planning around new pilot duty and rest norms, effective November 1, may have played a major role. 

Regulatory actions intensify 

The aviation watchdog has escalated oversight: 

• Two DGCA oversight panel members deployed at IndiGo HQ 
• Continuous monitoring of flight operations, refunds and passenger support systems 
• Four DGCA Flight Operation Inspectors (FOIs) terminated from deputation to return to their parent organisations 

Simultaneously, a four-member committee has been constituted to examine manpower planning, rostering, and IndiGo’s preparedness for the new duty-time limits for pilots. 

IndiGo CEO summoned again 

IndiGo CEO Pieter Elbers, who appeared before an inquiry panel on December 11, has been summoned again on December 12 by the Committee of Officers at the DGCA. 

Under competition law, the CCI first undertakes a preliminary information-based review. Only if it finds prima facie evidence of a violation will it order a detailed investigation. If violations are established, CCI has the power to impose penalties and issue cease-and-desist directives across sectors, including aviation.