The Competition Commission of India (CCI) has launched an investigation into Interglobe Aviation 's business practices following significant operational disruptions that led to thousands of flight cancellations in December 2024. The anti-trust regulator has sought comprehensive information from both IndiGo and the aviation regulator DGCA to assess potential violations of competition norms.

Investigation Details and Scope

The CCI's probe centers on whether IndiGo, which commands over 63% of India's domestic aviation market, engaged in anti-competitive practices during the December crisis. The regulator has sent specific queries to the airline while simultaneously requesting information from DGCA, including data on airfares, to gain a comprehensive understanding of the sector dynamics.

Regulatory Response and Timeline

The Directorate General of Civil Aviation had responded swiftly to the December disruptions by reducing IndiGo's winter schedule by 10%. DGCA's investigation into the operational failures has been completed, while the CCI's assessment represents a separate regulatory track focusing on competition law violations.

On December 18, 2024, CCI officially announced its decision to proceed with the matter, stating it had taken cognizance of information filed against IndiGo in the context of recent flight disruptions across various routes. The commission confirmed its intention to proceed "in accordance with the provisions of the Competition Act, 2002."

CCI's Assessment Process

CCI Chairperson Ravneet Kaur explained the commission's approach on December 19, 2024, emphasizing that the decision to investigate was based on specific information received. The regulator is currently conducting a prima facie assessment to determine whether there is sufficient evidence of anti-competitive practices to warrant a detailed investigation by its Director General.

Market Impact and Implications

The investigation focuses primarily on whether IndiGo abused its dominant market position during the operational crisis. As India's largest airline with a commanding market share, any anti-competitive behavior could have significant implications for the aviation sector's competitive landscape and consumer welfare.

The CCI's investigation represents a critical examination of how dominant players in essential services sectors manage operational crises and whether such situations are exploited to engage in practices that harm competition and consumers.

The Directorate General of Civil Aviation (DGCA) has mandated prominent Indian airlines to provide detailed airfare data following unprecedented travel disruptions in December. The regulatory action comes at the request of the Competition Commission of India (CCI), which is probing the widespread flight disruptions that hit air travel nationwide.

December Flight Crisis and Market Impact

The disruptions were primarily triggered by pilot shortages at InterGlobe Aviation , which dominates India's aviation market with approximately 65.00% share. The airline was forced to cancel around 4,500 flights in December, leaving thousands of passengers stranded and causing significant travel chaos across the country.

DGCA's Data Collection Initiative

The DGCA has written to multiple airlines requesting average fares charged during the disruption period. According to sources, the data will help the competition watchdog examine fare trends across airlines during the disruption window. The investigation targets major carriers including InterGlobe Aviation, Air India, SpiceJet, and Akasa.

Government Intervention and Fare Regulation

During the crisis, fares of certain airlines surged significantly, prompting immediate government intervention. The Centre was compelled to impose temporary fare caps as an emergency measure to protect passengers from exploitative pricing during the travel chaos.

Ongoing CCI Investigation

The CCI announced in December that it was proceeding against InterGlobe Aviation to assess whether the airline had abused its dominant market position during the disruptions. The competition watchdog is examining potential market abuse practices during the operational crisis.

InterGlobe Aviation has not commented on the ongoing investigation. The regulatory scrutiny highlights the challenges of maintaining fair market practices during operational disruptions in India's concentrated aviation sector.