IndiGo Faces CCI Scrutiny Amidst Operational Crisis, Airline Claims Stabilization
The Competition Commission of India (CCI) has taken cognizance of complaints against IndiGo, the country's largest airline, following a period of significant flight disruptions that impacted thousands of passengers. This regulatory scrutiny comes as the airline asserts that its operations have "completely stabilised" after facing criticism for widespread cancellations and delays.
The CCI's involvement stems from concerns about potential anti-competitive behaviour, given IndiGo's dominant market share of over 65%. The regulatory body is examining whether the airline violated competition norms, particularly focusing on potential abuse of its dominant position. According to an official, the CCI will investigate various aspects, including IndiGo's overall market dominance, its dominance on specific routes, and whether this dominance was abused. The CCI is empowered to prevent anti-competitive practices and promote fair business conduct in the marketplace. This includes the ability to impose penalties and issue orders to cease unfair practices.
The Directorate General of Civil Aviation (DGCA) is also separately investigating the flight disruptions and increasing its oversight of IndiGo's operations.
The disruptions, which began in early December, saw IndiGo cancel hundreds of flights, causing considerable inconvenience to passengers. The DGCA attributed the crisis to IndiGo's inadequate preparation for revised staffing, duty-time, and rostering requirements under the new Flight Duty Time Limitations (FDTL) scheme. The civil aviation ministry granted IndiGo a temporary exemption from certain FDTL rules to help it recover from the operational collapse.
In response to the crisis, IndiGo CEO Pieter Elbers stated that the airline has restored its flight network to approximately 2,200 daily services. Elbers conveyed to employees that "the worst is behind us," emphasizing that operations have stabilised and capacity has been restored. He outlined three priorities for the airline: strengthening resilience, conducting a root-cause analysis of the breakdown, and rebuilding systems to prevent a recurrence.
Aviation Minister Rammohan Naidu informed the Lok Sabha that IndiGo's operations are stabilizing and that no airline will be allowed to cause such hardship to passengers through planning failures or non-compliance. The minister stated that the DGCA issued show-cause notices to IndiGo's senior leadership and commenced a detailed enforcement investigation.
IndiGo has faced scrutiny regarding refunds for cancelled flights. The airline reported that it had refunded ₹827 crore to affected passengers and that the remaining refunds were being processed for cancellations up to December 15.
Despite the recent challenges, there are signs of operational stability, with improved on-time performance, reduced cancellations, and normalized schedules across major domestic routes. IndiGo's management has implemented corrective measures, including better aircraft rotation planning and closer coordination with airport operators.
