The Competition Commission of India, following its preliminary inquiry, said the airline appeared to have caused an appreciable adverse effect on competition by restricting its services.
The Competition Commission of India (CCI) has ordered an investigation into the country's largest airline, IndiGo, after finding prima facie evidence that it abused its dominant market position, according to an order issued by the antitrust watchdog on Wednesday.
The Commission, following its preliminary inquiry, said the airline appeared to have caused an appreciable adverse effect on competition by restricting its services.
Probe
Earlier, on December 18, 2025, the CCI said in a brief statement that it had taken cognisance of information filed against IndiGo in connection with widespread flight disruptions across multiple routes between December 1 and 9.
Dominant Position
In its order, the Commission noted that by cancelling thousands of flights, representing a significant proportion of its scheduled capacity, IndiGo had effectively withheld services from the market.
This, it said, created an artificial scarcity and limited consumer access to air travel during a period of peak demand.
'Such conduct by a dominant enterprise may be viewed as restricting the provision of services under Section 4(2)(b)(i) of the Act,' stated the CCI in its 16-page order.
Flight Cancellations & Capacity Cuts
The Commission said that, given IndiGo's dominant position, consumers were effectively locked in and lacked viable alternatives, a situation that appeared to violate provisions of the Competition Act.
The CCI has directed the office of the director general to submit an investigation report within 90 days of receiving the order.
The order records IndiGo's submission that the Competition Act does not empower the Commission to examine the adequacy or effectiveness of sectoral regulatory frameworks.
The airline argued that 'any intervention by the Commission in matters falling within the exclusive remit of the DGCA (Directorate General of Civil Aviation) would amount to an impermissible assumption of jurisdiction'.
Artificial Scarcity During Peak Demand
IndiGo cancelled more than 4,200 flights between December 1 and 9.
The disruption was triggered by the airline's failure to manage its pilot duty roster after the DGCA fully implemented stricter rest and duty regulations last month.
The new rules increased weekly rest requirements and reduced the number of hours pilots can fly at night.
Market Concentration in Domestic Aviation
In its order, the competition watchdog cited data on all domestic airlines, including passenger numbers, market share and available seat kilometres for the financial years 2023-2024 and 2024-2025, to establish that IndiGo was a significant player in the market.
'The domestic passenger aviation market exhibits very high and increasing concentration, exhibiting that leading firms possess the ability to operate independently of competitive forces, as the presence of effective rivals is materially constrained,' said the Commission.
Exclusive Routes & Network Dominance
The CCI also noted that IndiGo's substantial presence on high-density and revenue-critical routes pointed to significant economic strength and extensive network coverage across key city pairs.
The DGCA had provided the Commission with details of routes operated exclusively by IndiGo for September, October and November 2025.
The Commission said IndiGo's exclusive operations across a substantial number of city pairs demonstrated extensive network coverage combined with limited competitive presence in a significant segment of the market.
'Such structural presence on a large number of monopoly routes constitutes a relevant indicator of market power,' according to the order.
The DGCA had also furnished the CCI with year-wise revenue details of airline operators from 2021-2022 to 2024-2025.
Rules Impact
The CCI initiated its preliminary inquiry following a complaint from an informant, a Bengaluru-based consumer, who described a personal experience of having to book a ticket at a significantly higher price of Rs 17,000, compared with the original cost of Rs 7,173, because of flight cancellations.
Earlier, the civil aviation regulator, on December 9, had directed IndiGo to cut 10 per cent of its domestic flights for the entire winter season in an effort to stabilise operations.
Before the crisis, the airline was operating about 2,300 flights a day, including roughly 2,000 domestic services and 300 international flights.
Passenger Disruptions & Compensation Costs
Monopoly Routes & Network Power
Key Points
- Competition Commission of India has ordered a probe into IndiGo for alleged abuse of dominant market position.
- The watchdog said mass flight cancellations may have restricted services and hurt competition.
- IndiGo's cancellations allegedly created artificial scarcity during peak demand, limiting consumer access.
- The airline holds strong market power due to high market concentration and monopoly routes.
- IndiGo argued the matter falls under the Directorate General of Civil Aviation and not the competition regulator.
Feature Presentation: Ashish Narsale/Rediff
© 2026