CCI Orders Investigation Into IndiGo Over Alleged Abuse of Dominance After Mass Flight Cancellations

The Competition Commission of India (CCI) on Wednesday ordered an investigation into InterGlobe Aviation Ltd., which operates IndiGo, after forming a prima facie view that the airline may have abused its dominant position by cancelling a large number of flights in early December 2025 and leaving passengers to book tickets at sharply higher fares.

The order was passed by a coram comprising Chairperson Ravneet Kaur and Members Anil Agrawal, Sweta Kakkad, and Deepak Anurag.

At the threshold, the Commission rejected IndiGo's objection that the matter fell exclusively within the jurisdiction of aviation regulators. It held that the existence of sectoral regulation does not exclude the application of competition law and that allegations of abuse of dominance must be examined under the Competition Act.

Relying on Supreme Court precedent, the Commission said sectoral regulation and competition law operate in “distinct but complementary domains.” It noted that while the Directorate General of Civil Aviation oversees safety and operational compliance, it does not undertake competition law analysis such as defining the relevant market, assessing dominance, or examining abuse.

The Commission also rejected IndiGo's reliance on the Aircraft Rules. It was observed that the DGCA's powers over tariffs are supervisory and corrective in nature, and that the use of expressions such as “excessive” or “predatory” in aviation rules does not amount to a determination of abuse of dominance under competition law.

Turning to the merits, the Commission noted that the flight disruptions in December 2025 were not confined to one or a few routes but occurred across a wide domestic network, creating a system-wide capacity shock. In such circumstances, it held that the relevant market could not be assessed route by route and instead defined it as the “market for domestic air passenger transport services in India.”

Based on data furnished by the DGCA, the Commission found that IndiGo consistently accounts for around 60 percent of domestic passenger traffic and capacity. It also operates exclusively on more than 330 routes and is the only major airline to have reported sustained profits in recent years. These factors, the Commission said, indicate that IndiGo enjoys a dominant position in the relevant market.

The order stemmed from a passenger complaint stating that IndiGo cancelled his return flights just hours before departure and did not offer any alternate travel arrangements. However, when he tried booking it again, fares were much higher, and he had to book a flight two days later at a significantly higher fare.  

The regulator noted that this was not an isolated grievance. It pointed to widespread cancellations and delays between December 3 and 5, 2025, during which 2,507 flights were cancelled and 1,852 flights were delayed, affecting more than three lakh passengers across the country.

It also noted that the Ministry of Civil Aviation had imposed a penalty of Rs 22.20 crore on IndiGo for the disruptions during the same period.

In this backdrop, the Commission said passengers were left with no real choice but to accept last-minute cancellations and arrange alternative travel on their own at higher prices. Given IndiGo's dominant position, consumers were effectively locked in and lacked viable alternatives.

Summing up its prima facie assessment, the competition watchdog said:

“The afore-detailed conduct of the OP seems to be prima facie causing an appreciable adverse effect on competition in India. Thus, the Commission is of the opinion that a prima facie case of contravention of the provisions of Sections 4(2)(a)(i) and 4(2)(b)(i) of the Act by the OP is made out in the present matter.”

Accordingly, the Commission has directed its Director General to investigate the matter and submit a report within 90 days.