IndiGo flight cancellations: Antitrust probe against carrier? Here’s what we know

Doubling IndiGo’s woes, India’s antitrust regulator, the Competition Commission of India (CCI), may initiate an inquiry to ascertain if the airline broke antitrust rules. As per a report, the commission would particularly look into rules related to abuse of market dominance to restrict services and impose unfair conditions on passengers.

According to a report in The Economic Times, even with CCI’s probe it is the Directorate General of Civil Aviation (DGCA) that will lead the government’s larger, overall investigation. The CCI is following the developments and is expected to take a call soon.

IndiGo that controls 65 per cent of India’s aviation market triggered a disruption following crew shortage that led to the cancellation of more than 5,500 flights. This left tens of thousands of passengers stranded at airport across the airports and spiked airfares exorbitantly.

The CCI could initiate a probe on its own as the law empowers it to do so after receiving complaints or information from stakeholders, or even a reference from the government. If the commission finds a prima facie case of anti-competitive practices by a company, it will launch a formal investigation.

Meanwhile, Civil Aviation Minister Ram Mohan Naidu ordered a 10 per cent cut in IndiGo’s planned flights for winter to help restore order. IndiGo CEO Pieter Elbers was also summoned to the ministry to provide an update.

The 10 per cent curtailment is twice of what the DGCA had ordered on Monday. The airline said there was steady improvement across the network and would fly nearly 1,900 flights on Wednesday. As part of the winter schedule, the airline has been flying over 2,200 flights every day.

The DGCA has also asked the carrier to submit a revised schedule by Wednesday.