Why IndiGo is being probed by Competition Commission of India
What's the story
The Competition Commission of India (CCI) has ordered a detailed investigation into IndiGo's business practices. The decision comes after the airline canceled thousands of flights in December due to operational issues. The CCI's order alleges that these mass cancellations created an artificial scarcity, limiting consumer access to air travel during peak demand times.
Operational disruptions
CCI's order highlights potential violation of Competition Act
The CCI's 16-page order highlights that IndiGo's decision to cancel a large number of flights, which made up a significant part of the scheduled capacity, effectively withheld its services from the market. This created an artificial scarcity and limited consumer access to air travel during the times of peak demand. The regulator said such conduct by a dominant enterprise could be seen as restricting service provision under Section 4(2)(b)(i) of the Competition Act.
Probe initiation
Probe initiated after DGCA curtailed IndiGo's winter schedule
The CCI has initiated a probe against IndiGo after prima facie finding that its conduct appears to be having an appreciable adverse effect on competition in India. The decision comes after the Directorate General of Civil Aviation (DGCA) curtailed IndiGo's winter schedule by 10% till February 10 due to massive operational disruptions in early December.
Passenger impact
IndiGo canceled 2,507 flights between December 3-5
Between December 3 and 5 last year, the airline canceled 2,507 flights and delayed another 1,852. The resulting disruptions affected more than three lakh passengers at airports across the country.