IndiGo shares fall 2.5% on CCI probe into unfair practices
05 Feb 2026

IndiGo's shares plummeted by 2.5% to ₹4,827 per share today following a Competition Commission of India (CCI) probe into alleged unfair business practices.

The investigation comes two months after the country's largest airline canceled thousands of flights due to operational issues, causing major inconvenience to passengers.

The CCI has tentatively concluded that IndiGo abused its dominant position by canceling thousands of flights, significantly affecting scheduled capacity and creating an artificial scarcity in air travel during peak demand periods.

CCI's order cites 'abuse of dominant position'
Regulatory concerns

The CCI's 16-page order noted, "Such conduct by a dominant enterprise may be viewed as restricting the provision of services under Section 4 (2) (b)(i) of the Act." This section deals with abuse of dominant position.

The regulator considered data from airlines and information provided by aviation regulator DGCA while arriving at its preliminary conclusion.

It also took into account a complaint from a passenger affected by early December cancellations, identifying "market for domestic air passenger transport services in India."

Investigation ordered into alleged anti-competitive conduct
Investigation initiated

The CCI has ordered a detailed investigation by its Director General (DG) into IndiGo's conduct, which appears to be having an appreciable adverse effect on competition in India.

The regulator noted that IndiGo accounts for about 60-61% of total domestic ASKM (Available Seat Kilometers), indicating its effective control over market capacity and supply-side conditions.

The domestic passenger aviation market is highly concentrated, allowing leading firms to operate independently of competitive forces due to materially constrained presence of effective rivals.

CCI rejects IndiGo's objections regarding jurisdiction
Market control

The CCI also rejected IndiGo's objections that the regulator lacks jurisdiction in this case, citing a Supreme Court ruling.

It clarified that even if another authority finds an activity anti-competitive, its powers would be limited to actions under its own act.

Only the CCI can deal with such anti-competitive acts from the perspective of the Competition Act.

The DGCA does not conduct competition law analysis or assess dominance and its alleged abuse, which are part of CCI's mandate.

Over 2,500 flights canceled in early December
Market impact

In early December, IndiGo suffered massive operational disruptions, prompting the DGCA to cut the airline's winter schedule by 10% until February 10.

Between December 3-5, over 2,500 flights were canceled and nearly 1,900 delayed, affecting over three lakh passengers at airports across India.

Despite cornering over 63% of domestic air traffic market share for months, IndiGo's share slipped to 59.6% in December due to these disruptions.