India’s CCI reviews IndiGo for antitrust abuse after 4,500 flight cancellations
Key Points
- 1CCI initiates antitrust review against IndiGo following widespread operational disruptions earlier this month.
- 2IndiGo cancelled approximately 4,500 flights, stranding thousands, due to systemic failures in pilot roster planning.
- 3The investigation centers on allegations that the dominant carrier abused its market position by raising replacement ticket prices after mass cancellations.
- 4The incident underscores the vulnerability of India's aviation sector, dominated by a near-duopoly of IndiGo and Air India.
The Competition Commission of India (CCI) has initiated an initial assessment into budget airline IndiGo following widespread flight disruptions earlier this month. IndiGo, which commands over 60% of the domestic market, cancelled approximately 4,500 flights due to systemic failures in pilot roster planning. These cancellations stranded tens of thousands of passengers and prompted the Indian government to impose temporary fare caps as ticket prices surged dramatically.
The regulator took cognizance of information alleging antitrust violations, specifically focusing on the carrier’s conduct during the crisis. While the CCI did not disclose specifics, a complaint filed by a lawyer and seen by Reuters accuses IndiGo of abusing its dominant market position by cancelling scheduled services and subsequently offering replacement seats at significantly inflated prices. This practice allegedly constitutes an abuse of dominance under competition law.
This incident highlights the inherent risks within the world’s fastest-growing aviation market, where IndiGo and Air India collectively hold more than 90% of the domestic share, creating a near-duopoly environment. IndiGo, typically known for its operational punctuality, has apologized for the mass cancellations, labeling the event a "blemish" on its operational record. The CCI's initial assessment could lead to a detailed formal investigation and potential financial penalties if the allegations of anti-competitive practices are substantiated.
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