IndiGo Disruptions To Be Probed By Competition Commission Too

The CCI will look into IndiGo's mass flight cancellations across several routes, the country's fair trade regulator said in a statement.

The Competition Commission of India (CCI) in a statement said it has taken note of information and complaints about IndiGo in the context of the recent flight disruptions.

"Based on the initial assessment, the Commission has decided to proceed further in the matter in accordance with the provisions of the Competition Act, 2002," the CCI said.

IndiGo, which has a domestic market share of over 65 per cent, cancelled hundreds of flights starting from December 2, causing hardships to thousands of passengers.

While the regulator Directorate General of Civil Aviation (DGCA) is probing the flight disruptions apart from stepping up the scrutiny of IndiGo's operations, there are concerns about whether the airline's dominant position could also have been a contributing factor.

The CCI has been internally checking whether IndiGo violated competition norms, news agency PTI reported.

IndiGo chief executive Pieter Elbers told employees the airline has stabilised operations after a period of disruption, saying the worst was over and that the country's largest airline was now focused on resilience, a root-cause review and rebuilding.

The CCI works under the Competition Act, 2002, as amended by the Competition (Amendment) Act, 2007. This law bans anti-competitive agreements, abuse of dominant position by enterprises and regulates combinations (acquisition, acquiring of control, and mergers and acquisition), which causes or will likely cause an appreciable adverse effect on competition within India.

The immediate causes of the IndiGo crisis span crew shortages, new duty-time rules, technical breakdowns at key airports and heavy congestion during peak winter operations.