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The regulator's 16-page order asserts that by cancelling thousands of flights, which represented a substantial portion of its scheduled capacity, IndiGo effectively withheld services. This move, authorities contend, generated artificial scarcity in the air travel market and curtailed consumer options precisely when demand was highest. Such conduct by a dominant enterprise, the CCI stated, may be interpreted as restricting the provision of services under Section 4(2)(b)(i) of the Competition Act, which governs the abuse of dominant positions.
Investigation Launched Amidst Operational Disruptions
This probe into alleged anti-competitive behaviour comes after a period of significant operational challenges for IndiGo. In early December, the airline faced widespread disruptions, prompting the Directorate General of Civil Aviation (DGCA) to curtail its winter schedule by 10% until February 10. Official figures indicate that between December 3 and December 5 alone, IndiGo cancelled 2,507 flights and delayed 1,852, impacting over 300,000 passengers across the country. The CCI's Director General will now conduct a detailed investigation into these matters.
Concerns Over Market Dominance
The competition watchdog found prima facie evidence suggesting IndiGo's conduct may have caused an appreciable adverse effect on competition within India. Section 4 of the Competition Act strictly prohibits the abuse of a dominant position. The CCI's findings point towards a potential strategy by IndiGo to manipulate market supply, a serious allegation for an airline that commands a significant share of the domestic air travel market.