Why IndiGo may face an antitrust probe in India soon
What's the story
India's leading airline IndiGo is under the scanner of the Competition Commission of India (CCI) for possible violation of antitrust laws. The investigation comes in light of a major operational crisis that saw over 5,000 flights canceled in a week due to severe crew shortages. The situation has left thousands stranded during the peak travel season and raised concerns about IndiGo's compliance with new pilot rest regulations.
Investigation
CCI to investigate potential abuse of market dominance
The CCI is looking into whether IndiGo abused its dominant position in the domestic aviation market, which it controls with a 65% share. A senior government official told The Times of India that there are "strong grounds" for an investigation under Section 4 of the Competition Act. This section prohibits a dominant enterprise from limiting services or imposing unfair and discriminatory conditions on consumers.
Regulatory action
DGCA issues notice to IndiGo's top executives
In response to the crisis, the Directorate General of Civil Aviation (DGCA) has issued a show-cause notice to IndiGo's CEO Pieter Elbers and COO Isidre Porqueras. The airline's management has sought more time for a detailed response, citing the complexity of its operations. While DGCA is leading the broader government probe into operational disruptions, CCI is monitoring developments closely and may decide soon whether to launch an inquiry within its antitrust jurisdiction.
Previous cases
IndiGo's past encounters with anti-competitive allegations
Notably, this isn't the first time IndiGo has faced anti-competitive allegations. The airline was previously investigated by CCI in 2015 and 2016 but was cleared of wrongdoing in both cases. Now, it remains to be seen how the airline defends its business conduct amid mass service limitations affecting thousands of travelers during peak travel season.