IndiGo Faces Antitrust Scrutiny Over Massive Flight Cancellations

India's competition regulator is investigating allegations against budget airline IndiGo for antitrust violations following major flight cancellations. With over 60% of the market, IndiGo canceled 4,500 flights due to poor planning, stranding passengers and leading to fare hikes and government-imposed caps.

India's competition regulator announced it is examining claims of antitrust violations by budget airline IndiGo after widespread disruptions rocked the nation's air travel sector. The airline, with a stronghold of over 60% in the domestic market, cancelled approximately 4,500 flights earlier this month, greatly impacting tens of thousands of passengers. In the wake of these cancellations, airfares soared, prompting government intervention with temporary fare caps.

The Competition Commission of India confirmed it has acknowledged reports lodged against IndiGo concerning the recent disruptions across numerous flight routes and is initiating a preliminary review. While specifics of the allegations remain undisclosed, a reported complaint suggests that IndiGo exploited its dominant market position by cancelling flights and subsequently charging higher fares for rebooked seats. Lawyer Kartikeya Rawal, an affected passenger, has claimed his cancelled flight was replaced with a significantly costlier ticket.

IndiGo has yet to respond to requests for comments on these allegations. The situation highlights the dangers presented by the near-duopoly in India's rapidly expanding aviation market, dominated primarily by IndiGo and Air India. While the CCI refrained from further comments outside their official statement, the body reserves the right to launch a detailed investigation that could lead to penalties should misconduct be verified. IndiGo, noted for its punctual operations, has issued apologies for the alterations, candidly admitting it was a "blemish" on its service record.

(With inputs from agencies.)