MC EXCLUSIVE IndiGo under CCI scanner: IndiGo executives might meet competition regulator in coming days

The Competition Commission of India (CCI) is likely to discuss the matter with IndiGo executives in the coming days, the official added.

India’s anti-competition watchdog is internally probing IndiGo to assess whether the country’s largest airline violated provisions of the Competition Act, a senior government official told Moneycontrol.

The Competition Commission of India (CCI) is likely to discuss the matter with IndiGo executives in the coming days, the official added. "But for a notice to be sent, there has to be evidence that IndiGo has abused its dominant position for the crisis (that took place last week). We are only examining right now," said the person.

IndiGo has a market share of more than 65 percent in India’s aviation sector, and last week 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.

The cancellations peaked on December 5 and have declined since, with the airline saying on Tuesday that its operations have stabilised and are back to normal levels.

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).

Imposing unfair or discriminatory conditions or prices (including predatory pricing, which is selling below cost) is a form of 'abuse of dominance.'

The CCI has initiated a suo motu inquiry in the IndiGo case, and if any violation of competition norms is found, the regulator may impose a monetary penalty on the airline, as per the official.  As of now, there is no formal complaint against IndiGo.

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.

The aviation ministry also said corrective measures, including fare caps, refund timelines and baggage directives, would remain in place until IndiGo’s operations fully stabilise.