IndiGo Shares Under Spotlight as CCI Probes Flight Cancellations.
Shares of InterGlobe Aviation Ltd., the parent company of IndiGo, are in focus after the Competition Commission of India (CCI) confirmed it is reviewing allegations of anti-trust violations linked to the airline’s mass flight cancellations earlier this month.
The CCI said it had “taken cognizance of information filed against IndiGo in the context of the recent flight disruptions across various routes” and will carry out an initial assessment. Specific details of the allegations have not been disclosed.
One complaint, seen by Reuters, claims IndiGo cancelled flights and then offered replacement seats at significantly higher fares, potentially abusing its dominant market position. The filing, by lawyer Kartikeya Rawal, alleges his ticket was cancelled and the rebooked fare was much higher.
In the first week of December, IndiGo cancelled around 4,500 flights due to poor pilot roster planning, triggering one of India’s biggest aviation crises with thousands stranded at airports. Ticket prices surged during the disruptions, prompting the government to impose temporary price caps.
IndiGo, known for its on-time performance, apologised for the cancellations, calling them a “blemish” on its record. The episode highlighted the risks of a near-duopoly in India’s aviation market, where IndiGo and Air India together control over 90% of domestic capacity. IndiGo alone has more than 60% market share.
Following the cancellations, IndiGo’s share price has fallen about 4.75%, after a steeper drop earlier in December. The stock partially recovered in the days following the initial slump.
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