IndiGo Under Investigation: Competition Concerns in India's Aviation Sector

India's competition regulator is investigating IndiGo, the country's largest airline, after it cancelled about 4,500 flights in December. The cancellations highlighted limited competition and increased prices in the growing aviation market. IndiGo allegedly leveraged its dominant position to restrict services and impact consumer access.

India's competition regulator has initiated an inquiry into IndiGo following extensive flight cancellations in December. The disruption sent ripples through India's air travel industry, raising alarms over competition in the aviation sector.

IndiGo, dominating India's airline market with a substantial fleet and network, cancelled approximately 4,500 flights in the initial weeks of December, effectively stranding a multitude of passengers. Concerns have arisen over the airline's dominance, which the Competition Commission of India claims was leveraged to create an artificial scarcity in the market.

The cancellation wave led to sharp price increases and alleged antitrust violations, prompting formal investigation. A previous probe by the Directorate General of Civil Aviation resulted in a $2.45 million fine against IndiGo, highlighting operational deficiencies and regulatory breaches.