India's competition regulator mulls probe into IndiGo over flight disruptions
What's the story
The Competition Commission of India (CCI) is considering launching an investigation into IndiGo, following complaints over recent flight disruptions. The probe is based on the provisions of the Competition Act, 2002. The decision comes after an initial assessment indicated possible anti-competitive behavior by IndiGo, which dominates India's aviation sector with over 65% market share.
Operational challenges
IndiGo's flight cancelations and impact on passengers
Earlier this month, IndiGo canceled over 4,600 flights due to its failure to comply with new safety regulations. The cancelations affected thousands of passengers across the country and led to a sharp increase in airfares. The Directorate General of Civil Aviation (DGCA) attributed the crisis to IndiGo's inadequate preparations for revised staffing, duty-time, and rostering requirements under the new Flight Duty Time Limitations (FDTL) scheme.
Inquiry details
CCI's investigation process and potential consequences
The CCI's probe will be conducted by the Director-General, who can summon executives, record statements, and demand internal company documents or emails. If found guilty of violating anti-competition laws, IndiGo could face penalties under the Competition Act. These penalties may include monetary fines on the company as well as directives to cease or modify certain practices.
Regulatory relief
IndiGo's response to the situation and regulatory measures
In light of the widespread disruptions, the civil aviation ministry granted IndiGo a one-time exemption from certain FDTL rules until normal operations are restored. The exemption is aimed at helping the airline recover from its operational collapse. Meanwhile, IndiGo is also facing a Public Interest Litigation (PIL) in the Delhi High Court over its role in the crisis that left over 1.2 million passengers stranded at various airports.