IndiGo under antitrust review after nationwide flight cancellations disrupt travel

India’s competition regulator said on Thursday it is reviewing allegations of antitrust violations by budget airline IndiGo following recent flight disruptions that affected air travel across the country.

The Competition Commission of India (CCI) said it has “taken cognisance of information filed against IndiGo in the context of the recent flight disruptions witnessed in the aviation sector, across various routes” and has decided to proceed with an initial assessment. The regulator did not disclose details of the allegations.

IndiGo, which controls more than 60% of India’s domestic aviation market, cancelled around 4,500 flights earlier this month due to poor pilot roster planning. The cancellations stranded tens of thousands of passengers and triggered one of the country’s biggest aviation disruptions.

Airfares surged during the period of cancellations, prompting the government to impose temporary caps on ticket prices.

One complaint, seen by Reuters, accuses IndiGo of cancelling flights and then offering seats at much higher prices, amounting to an abuse of its dominant market position. The filing by lawyer Kartikeya Rawal alleges that his ticket was cancelled and that the replacement fare quoted was significantly higher.

IndiGo did not immediately respond to a request for comment.

The disruptions highlighted concerns over a near-duopoly in India’s aviation market, where IndiGo and Air India together account for more than 90% of domestic market share.

The CCI did not respond to a request for further comment beyond its statement. Under competition law, the regulator can order a detailed investigation that may result in penalties if violations are established.

IndiGo, which is known for its on-time performance, has apologised for the cancellations and described them as a “blemish” on its record.

(With inputs from agencies)