New Delhi: The Competition Commission of India has ordered a detailed investigation into IndiGo over large-scale flight cancellations and a sharp rise in airfares during December 2025, saying there is prima facie evidence that the airline’s conduct may have resulted in unfair pricing and restriction of services, even as the carrier maintains that cancellations were driven by operational constraints.
In a detailed order, the regulator said IndiGo’s decision to cancel a significant number of flights at short notice during a peak travel period may have led to an artificial reduction in capacity, leaving passengers with limited options and forcing many to rebook at substantially higher fares. Given IndiGo’s dominant position in the domestic aviation market, the CCI observed that such conduct, if proven, could fall foul of competition law provisions relating to abuse of dominance.
The probe follows a complaint by an affected passenger who alleged that a cancelled itinerary forced him to purchase alternative tickets at sharply inflated prices. The CCI noted that the matter goes beyond routine service issues and warrants an examination of capacity planning, pricing behaviour and internal decision-making during the disruption period.
IndiGo had argued that issues relating to flight cancellations and fares fall within the regulatory ambit of the DGCA and aviation laws, but the CCI rejected the contention, holding that sectoral regulation does not oust the commission’s jurisdiction to examine anti-competitive conduct.
The regulator has directed its investigation arm to complete the probe within 90 days. The development weighed on market sentiment, with IndiGo shares sliding nearly 4% following the order, as investors assessed the potential regulatory and reputational impact of the case.
BI Bureau
