CCI to probe complaints against IndiGo for recent flight disruptions

CCI to probe complaints against IndiGo for recent flight disruptions

The Competition Commission of India (CCI) has taken cognizance of complaints filed against IndiGo in the context of the recent flight disruptions witnessed in the aviation sector across various routes.

Based on the initial assessment, CCI has decided to proceed further in the matter in accordance with the provisions of the Competition Act, 2002.

IndiGo has a market share of more than 65 percent in India’s aviation sector, and earlier this month it had cancelled more than 2,000 flights. The cancellations were a result of the airline failing to plan for tighter safety regulations, leaving tens of thousands of passengers stranded across the country. It also caused a significant surge in airfares.

To be sure, Section 4 of the Competition Act pertains to 'abuse of dominance' that can be exploitative or exclusionary. Section 4(2) of the Act lists practices that are considered an abuse of dominant position. These are broadly categorised into exploitative abuses (harming consumers) and exclusionary abuses (harming competitors).

According to the Directorate General of Civil Aviation (DGCA), the primary cause of the crisis was IndiGo’s failure to make adequate arrangements to comply with revised staffing, duty-time and rostering requirements introduced under the new Flight Duty Time Limitations (FDTL) scheme.

These rules were introduced to regulate pilots’ working hours and rest periods in line with international safety standards, and were notified in phases, beginning in 2024. The remaining clauses in the FTDL rules came into effect on November 1.

Following widespread disruptions in IndiGo’s operations, the civil aviation ministry on December 5 granted the airline a one-time exemption from some of the FTDL rules until normal operations are restored.

Earlier on December 18, IndiGo's chief executive Pieter Elbers told employees that the airline has stabilised operations after a period of disruption, saying the worst was over and that the country's largest airline was now focused on resilience, a root-cause review and rebuilding.

In a video message to staff, Elbers said IndiGo has restored most of its flight network following the disruptions.

IndiGo has appointed an external aviation expert to conduct a comprehensive root-cause analysis into the disruption, he said, urging employees to avoid speculation while the review is underway.

The CEO said similar disruptions had affected large airlines globally and that lessons would be used to strengthen IndiGo's systems.

Stating that everyone wants to know the reasons for disruptions, he said an external aviation expert has been appointed by the board to conduct a comprehensive root cause analysis.

As part of the rebuilding effort, the leadership team will travel across the network to meet employees and gather feedback on challenges faced during the disruption.

"A combination of this root cause analysis and your input will help us build Indigo even stronger and even better," he said.

The CEO said the recent difficulties should not define the airline's 19-year history, noting that IndiGo has grown from a single aircraft in 2006 to a workforce of about 65,000 employees, carrying more than 850 million passengers with an unblemished safety record.