CCI Launches Probe Into IndiGo Over Flight Chaos
The Competition Commission of India (CCI) has ordered a detailed investigation into IndiGo, the country’s largest airline, for alleged unfair business practices. The probe follows widespread flight cancellations and delays that left thousands of passengers stranded.
Key Takeaways
- CCI initiates a suo motu probe against IndiGo for alleged abuse of dominant market position.
- The investigation follows mass flight disruptions due to fog, infrastructure, and crew issues.
- IndiGo’s parent company, InterGlobe Aviation, saw its shares fall over 2% after the order.
- The Director General must submit a report within 60 days.
Why the Probe Was Ordered
The regulator took note of the matter after receiving numerous passenger complaints. The CCI stated there are prima facie indications that IndiGo abused its dominant position in the domestic market, causing an “appreciable adverse effect on competition”.
“The Commission is of the prima facie view that IndiGo has indulged in practices resulting in denial of market access and imposing supplementary obligations on its customers, which are unfair,” the CCI said in a release.
Background of the Crisis
The order comes after a period of operational chaos for the airline. Hundreds of flights were cancelled or delayed due to a combination of adverse weather , infrastructure problems, and crew unavailability.
Market Reaction and Next Steps
Following the CCI order, shares of InterGlobe Aviation fell sharply, trading over 2% lower on the BSE. The investigation will be conducted by the Director General (DG), the CCI’s investigation arm, which must submit its findings within 60 days.
