The competition commission of India (CCI) has ordered a detailed investigation into InterGlobe Aviation Ltd, which operates IndiGo, over allegations that the airline abused its dominant market position by cancelling thousands of flights in December 2025 and then charging sharply higher fares from stranded passengers.
In an order passed on 4 February 2026, the regulator found a prima facie case that IndiGo may have violated provisions of the Competition Act, 2002, relating to abuse of dominance, and directed the director general (DG) to complete an investigation within 90 days.
In the order, the CCI bench of Ravneet Kaur (chairperson), and members Anil Agrawal, Sweta Kakkad, and Deepak Anurag, says, "...by cancelling thousands of flights constituting a significant portion of the scheduled capacity, IndiGo effectively withheld its service from the market, creating an artificial scarcity, limiting consumer access to air travel during peak demand. Such conduct by a dominant enterprise may be viewed as restricting the provision of services under Section 4(2)(b)(i) of the Act."
"The conduct of IndiGo seems to be prima facie causing an appreciable adverse effect on competition in India. Thus, the Commission is of the opinion that a prima facie case of contravention of the provisions of Sections 4(2)(a)(i) and 4(2)(b)(i) of the Act by the OP is made out in the present matter. Accordingly, in terms of the provisions contained in Section 26(1) of the Act, the Commission directs the DG to cause an investigation to be made into the matter and submit an investigation report within a period of 90 days from the date of receipt of this order," the CCI order says.
The case stems from a complaint filed by Bengaluru-based passenger Kartikeya Rawal, who alleged that IndiGo cancelled his return journey from Delhi to Bengaluru via Goa at the last minute on 5 December 2025, without offering any alternative travel arrangement. When he tried to rebook, fares on the same airline had jumped sharply, leaving him with little choice but to wait two days and pay ₹17,000 for another IndiGo flight which was more than double his original fare of ₹7,173.
According to the complaint, the disruption was not an isolated incident. During the first week of December 2025, IndiGo cancelled hundreds of flights across its domestic network, triggering widespread chaos and a steep rise in airfares across sectors. With limited seats available on competing airlines, passengers were forced to either pay inflated prices or delay travel.
IndiGo challenged the CCI’s jurisdiction, arguing that matters relating to flight cancellations and airfares fall exclusively under the regulatory framework of directorate general of civil aviation (DGCA) and the Bharatiya Vayuyan Adhiniyam, 2024. The airline claimed that the aviation sector is governed by a comprehensive and specialised regime and that competition law scrutiny was therefore not applicable.
CCI rejected this argument, relying on Supreme Court rulings that have consistently held that sectoral regulation and competition law operate in distinct but complementary domains. The regulator says the existence of aviation rules does not bar it from examining conduct that may distort competition or harm consumers.
Significantly, the DGCA itself told the commission that it does not exercise economic regulatory powers over airfares and does not conduct competition assessments such as defining markets, examining dominance or evaluating anti-competitive effects. While airlines are required to publish tariffs for transparency, the DGCA clarified that it does not regulate pricing decisions in the market.
After reviewing extensive data from the DGCA, the commission found that IndiGo holds a commanding position in India’s domestic aviation market. The airline accounted for about 60% of total passenger capacity in both FY23–24 and FY24–25 and operated as the sole carrier on more than 330 domestic routes during key months in late 2025. It also runs the country’s largest fleet, with over 400 aircraft, and is the only major airline to post sustained profits in recent years.
The commission defined the relevant market as domestic air passenger transport services across India, noting that the December 2025 disruptions created a system-wide capacity shock rather than affecting isolated routes.
The order also refers to publicly reported data showing that between 3rd December and 5 December 2025, IndiGo cancelled 2,507 flights and delayed another 1,852, impacting more than three lakh passengers nationwide. The Union ministry of civil aviation (MoCA) later imposed a penalty of ₹22.20 crore on the airline for the large-scale disruptions.
CCI says the alleged conduct—cancelling a substantial portion of scheduled capacity and then offering seats at much higher prices—may amount to unfair pricing and restriction of services by a dominant enterprise. Such behaviour, it noted, could leave consumers effectively locked in with no viable alternatives.
While stressing that its findings are only preliminary, the commission concluded that the allegations warrant a full investigation. The DG has been asked to probe whether IndiGo’s actions violated Sections 4(2)(a)(i) and 4(2)(b)(i) of the Competition Act.
The outcome of the probe could have far-reaching implications for India’s aviation sector, particularly on how dominant airlines are expected to behave during large-scale disruptions and capacity shocks.
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