CCI probes IndiGo for abusing its market dominance
What's the story
The Competition Commission of India (CCI) is conducting a preliminary assessment into IndiGo airlines over allegations of exploitative pricing. The probe was initiated after complaints about the airline's conduct following mass flight cancellations. According to Business Standard, the CCI is looking into whether IndiGo engaged in practices that may have caused significant consumer inconvenience, especially through steep fare increases after recent disruptions.
Complaint details
Consumer complaint triggers CCI investigation
The CCI's inquiry was triggered by a consumer complaint detailing an experience of having to pay nearly two-and-a-half times the original fare after flight cancellations. While this individual case is part of the information received, the CCI's assessment will focus on broader consumer impact rather than isolated incidents. "If the company is restricting supply and subsequently raising prices, it becomes an issue under Section 4 of the Competition Act," reported Business Standard, citing people familiar with the developments.
Cancelations explained
IndiGo's flight cancelations linked to pilot duty roster management
Notably, IndiGo canceled over 4,200 flights between December 1 and 9. The disruption was attributed to the airline's struggle with managing pilot duty rosters after the Directorate General of Civil Aviation (DGCA) imposed stricter rest and duty norms last month. These included increased weekly rest requirements and reduced night flying hours for pilots.