New Delhi, February 4, 2026 — The Indian authority has ordered a formal investigation into InterGlobe Aviation Limited, which operates low-cost carrier IndiGo, after finding prima facie evidence that the airline abused its dominant position through large-scale flight cancellations and excessive pricing during disruptions in December 2025.
In an order under Section 26(1) of the Competition Act, the Competition Commission of India (CCI) directed its Director General to investigate whether IndiGo’s conduct violated the prohibition on abuse of dominance. The case stems from a complaint filed by an individual passenger alleging that the airline cancelled flights at short notice and subsequently charged sharply higher fares, leaving passengers with no viable alternatives.
Market Power and Dominance
The CCI defined the relevant market as the domestic air passenger transport services market in India. Based on data provided by the Directorate General of Civil Aviation, the Commission found that IndiGo holds a dominant position, with a passenger market share exceeding 60% and control over approximately 60–61% of total available seat-kilometre capacity in recent financial years.
The Commission also noted that IndiGo operated as the sole carrier on more than 330 domestic routes during the relevant period and maintained a significantly larger fleet than its nearest competitors. Additionally, IndiGo was identified as the only major airline to report sustained profitability in recent years, while most other carriers incurred losses.
Alleged Abusive Conduct
According to the order, IndiGo cancelled thousands of flights between December 3 and December 5, 2025, resulting in system-wide capacity shortages and sharp fare increases across multiple routes. The CCI observed that more than 2,500 flights were cancelled and over 1,800 flights were delayed, affecting more than 300,000 passengers nationwide.
The Commission found that passengers were left with little choice but to accept cancellations and rebook at significantly higher prices, often on IndiGo itself. In this context, the CCI held that the airline’s conduct may amount to imposition of unfair prices and restriction of services, in violation of Sections 4(2)(a)(i) and 4(2)(b)(i) of the Act.
The order also referenced action taken by the Ministry of Civil Aviation, which imposed a penalty of INR 222 million (approximately $2.4 million] on IndiGo for large-scale delays and cancellations during the same period.
Jurisdiction Rejected
The CCI rejected IndiGo’s argument that the matter fell exclusively within the jurisdiction of aviation regulators, holding that sectoral regulation does not oust the Commission’s authority to assess abuse of dominance. The Commission emphasized that aviation regulation and competition law operate in distinct and complementary domains.
Next Steps
The Director General has been instructed to complete the investigation and submit a report within 90 days. The CCI stressed that its findings are preliminary and do not constitute a final determination on the merits of the case.
Source: https://www.cci.gov.in/antitrust/orders/details/1222/0
