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Did IndiGo enforce unreasonable terms on travellers? India’s competition watchdog probes – Firstpost

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The cancellations left thousands of travellers stuck during a busy holiday period, caused largely by a severe crew shortage after the airline struggled to meet new pilot rest rules

India’s largest domestic airline, IndiGo, is facing the threat of an antitrust investigation by the Competition Commission of India (CCI) following a chaotic period marked by over 5,000 flight cancellations in a single month.

The cancellations, which stranded thousands of passengers during a peak travel period, stemmed from an acute crew shortage, primarily linked to the airline’s inability to fully comply with new pilot rest regulations.

IndiGo holds a dominant position in the domestic market, commanding approximately 65% of the sector. According to a senior government official quoted by the Times of India, the competition watchdog now has “strong grounds” to investigate whether the airline misused this dominant market standing. Specifically, the probe would seek to determine if IndiGo violated Section 4 of the Competition Act, which prohibits a dominant enterprise from restricting services or imposing unfair and discriminatory conditions on consumers.

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The crisis prompted the Directorate General of Civil Aviation (DGCA) to issue a show-cause notice to IndiGo’s top executives, including CEO Pieter Elbers and COO Isidre Porqueras. The airline’s management requested more time to provide a detailed explanation, citing the complex nature of its operations.

While the DGCA is spearheading the broader government investigation into the operational disruptions, the CCI is now monitoring the situation closely and is expected to decide soon whether to formally launch an inquiry within its antitrust jurisdiction.

This adds significant regulatory pressure on IndiGo, which, despite having previously faced and been cleared of anti-competitive allegations in 2015 and 2016, must now defend its business conduct in light of mass service limitations affecting thousands of travellers.

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