Key Points
- Regulatory Action: The CCI has ordered a probe under Section 26(1) of the Competition Act, 2002, following a 16,page order issued on February 4, 2026.
- Service Disruption: The investigation stems from the cancellation of 2,507 flights and delays of 1,852 others between December 3 and December 5, 2025.
- Pricing Allegations: Authorities are scrutinizing “excessive pricing” practices that reportedly occurred immediately after the mass cancellations.
- Market Monopoly: Data reveals IndiGo holds a 63% passenger market share and is the sole operator on approximately 330 city,pair routes.
- Previous Penalties: The Ministry of Civil Aviation had already imposed a ₹22.20 crore fine on the carrier in January 2026 for roster planning failures.
The Competition Commission of India (CCI) has intensified the legal challenges facing IndiGo, the nation’s largest airline, by ordering a comprehensive investigation into its operational practices. The move follows a period of significant turbulence for the carrier, characterized by large,scale flight cancellations in December 2025 that left over 300,000 passengers stranded across the country.
The Core Allegation: Abuse of Dominant Position
In its 16,page order dated February 4, 2026, the CCI stated that there is a prima facie case to investigate IndiGo under Section 4(2)(a)(i) of the Competition Act. The commission is looking into whether the airline abused its “dominant position” by effectively limiting the supply of services and subsequently charging “excessive” or “unfair” prices for the remaining available tickets.
The regulatory body noted that when a single airline with such vast market control suddenly reduces supply, the lack of consumer alternatives can lead to market distortions. Charging significantly higher fares during a self,inflicted supply crisis is a primary focus of this investigation.
Background of the December Crisis
The catalyst for this probe was the chaos observed during the first week of December 2025. Between December 3 and December 5, IndiGo cancelled 2,507 flights and delayed another 1,852. This massive disruption affected an estimated 300,000 travelers, many of whom alleged that alternative arrangements were not provided while ticket prices for remaining flights surged to exorbitant levels.
Earlier, on January 17, 2026, the Ministry of Civil Aviation (MoCA) imposed a fine of ₹22.20 crore on the airline. The ministry cited failures in pilot roster planning and non,compliance with strict Directorate General of Civil Aviation (DGCA) pilot rest regulations as the primary causes for the operational collapse.
IndiGo’s Market Supremacy
The CCI’s decision to investigate is underpinned by striking market data from the DGCA, which highlights IndiGo’s overwhelming presence in the Indian aviation sector:
- Market Share: IndiGo’s passenger market share grew from 61.6% in FY 2023,24 to 63% in FY 2024,25.
- Route Control: Out of 835 city,pair routes in India, IndiGo operates on 643. Most notably, the airline is the sole operator on 330 of these routes, leaving passengers with no competitive alternatives.
- Fleet Strength: With over 400 aircraft, IndiGo’s fleet size is more than double that of its nearest competitor, Air India, which operates approximately 191 aircraft.
Next Steps in the Investigation
The CCI has directed the Director General (DG) to conduct a detailed inquiry into these trade practices. The DG is required to submit a comprehensive report within 90 days.
The commission clarified that the current order is not a final verdict on IndiGo’s conduct but an assessment of initial evidence that warrants deeper scrutiny. A final decision on whether IndiGo violated the Competition Act will be made only after the investigation report is reviewed and all parties have been given a fair hearing. If found guilty of abusing its dominant position, the airline could face substantial financial penalties and mandatory changes to its operational and pricing policies.
