India's competition regulator, the Competition Commission of India (CCI), has ordered an investigation into IndiGo following mass flight cancellations in December 2025 that significantly disrupted the country's air travel sector. The order, which was published on February 4, 2026, on the regulator's website, highlights concerns about potential anti-competitive practices.

IndiGo, India's largest airline, canceled approximately 4,500 flights in the initial weeks of December 2025, leaving tens of thousands of passengers stranded across the nation. The cancellations raised concerns about the limited competition within the world's fastest-growing aviation market. The CCI's investigation will focus on whether IndiGo's actions constituted an abuse of its dominant market position, potentially creating artificial scarcity and engaging in unfair practices. The regulatory body dismissed IndiGo's argument that the matter fell outside its jurisdiction, asserting its authority under antitrust laws.

In January 2026, prior to the CCI's investigation, India's aviation regulator fined IndiGo a record $2.45 million (S$3.17 million), issued warnings to senior executives, and mandated the removal of the head of operations control from their duties. This action followed a probe by the Directorate General of Civil Aviation (DGCA), which revealed several deficiencies at the airline after stricter pilot rest and duty rules were implemented in 2025. According to data from the DGCA, IndiGo's cancellations impacted 9.82 lakh passengers out of over 10.46 lakh passengers affected across scheduled domestic airlines in December 2025. The airline spent Rs 22.74 crore on facilitation, demonstrating the financial strain of compensating affected travelers.

The CCI's 16-page order suggests that IndiGo's actions may have had a considerable adverse effect on competition within the Indian aviation sector. The investigation will scrutinize the strategic nature of the cancellations, as well as broader market dynamics including pricing and capacity deployment. The commission estimates IndiGo's domestic market share to be between 60% and 63%, further emphasizing the airline's dominant position. The probe aims to determine whether the grounding of a significant portion of IndiGo's fleet restricted the provision of services by a dominant player. The CCI has set a deadline of 90 days for the investigation report to be submitted.