New Delhi, February 5, 2026 – The Competition Commission of India (CCI) has directed an investigation into InterGlobe Aviation Limited (IndiGo) for allegedly abusing its dominant position in the domestic aviation market. The order follows complaints regarding large-scale flight cancellations and subsequent fare surges in December 2025.
The case was filed by Kartikeya Rawal, who alleged that IndiGo cancelled his return flight from Delhi to Bengaluru and, following the cancellations, charged significantly higher fares, forcing him to make costly alternative arrangements. The Informant claimed that the airline’s actions during the first week of December 2025 affected over three lakh passengers nationwide, causing widespread disruption.
Key Allegations Against IndiGo
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Flight Cancellations: Hundreds of IndiGo flights were cancelled between December 3–5, 2025, leaving passengers stranded.
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Fare Hikes: Following cancellations, IndiGo and other airlines reportedly increased ticket prices sharply, with the Informant noting his return fare jumping from INR 7,173 to INR 17,000.
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Market Dominance Abuse: IndiGo, holding around 60% of domestic seat capacity, allegedly restricted access to its services, creating artificial scarcity and limiting consumer options.
CCI’s Observations
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Relevant Market: The Commission defined the relevant market as “domestic air passenger transport services in India.”
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Dominance Assessment: Data from the Directorate General of Civil Aviation (DGCA) shows IndiGo consistently controls ~60% of Available Seat Kilometres (ASKM), operates the largest fleet in India with over 400 aircraft, and has extensive network coverage, including exclusive operations on more than 330 city-pair routes.
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Economic Impact: IndiGo reported sustained profits in FY 2023–24 and FY 2024–25, while most competitors operated at a loss, reflecting strong financial resilience and market power.
Regulatory Context
IndiGo argued that the Bhartiya Vayuyan Adhiniyam (BVA), 2024, and the Aircraft Rules, 1937, provide the DGCA with exclusive authority over airline tariffs and operational conduct. However, the CCI clarified that:
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DGCA’s role focuses on tariff publication, licensing, and operational compliance, not competition law.
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Competition law powers under the Competition Act, 2002, are distinct and aimed at protecting market structure and preventing anti-competitive conduct, which cannot be superseded by sectoral regulations.
The Commission cited Supreme Court judgments, including Bharti Airtel Limited v. CCI (2019), affirming its jurisdiction even in regulated sectors where anti-competitive conduct may occur.
Investigation Directive
Under Section 26(1) of the Competition Act, 2002, CCI has directed the Director General (DG) to conduct a detailed investigation into the allegations. The DG is required to submit a report within 90 days.
The investigation will focus on:
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Market dominance of IndiGo
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Alleged abuse of dominance, including flight cancellations and fare hikes
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Impact on consumer choice and competition in domestic air travel
CCI emphasized that this order does not constitute a final decision on merits but establishes a prima facie case warranting investigation.