India’s antitrust regulator has decided to examine a complaint against IndiGo linked to recent flight disruptions
The move follows an initial assessment that found sufficient grounds to pursue the matter further under competition law
The airline has cancelled thousands of flights since early December and has already paid out over ₹800 crore in refunds
CCI Orders Probe into IndiGo After Widespread Flight Disruptions
India’s competition watchdog has moved to examine complaints against IndiGo after widespread flight cancellations disrupted air travel across multiple routes. The decision follows an initial review of information submitted to the regulator, which concluded that the matter warrants deeper scrutiny under competition law
CCI Orders Probe into IndiGo After Widespread Flight Disruptions
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The Competition Commission of India (CCI) on Thursday decided to launch an inquiry into IndiGo airline following a complaint filed by an informant after recent flight disruptions, according to Business Standard reports.
“CCI has taken cognisance of Information filed against IndiGo in the context of the recent flight disruptions witnessed in the aviation sector, across various routes,” the statement read as quoted by the news publication.
“Based on the initial assessment, the Commission has decided to proceed further in the matter in accordance with the provisions of the Competition Act, 2002,” it added.
The CCI begins by carrying out a preliminary assessment of the information submitted and, if the findings warrant further action, instructs the office of the Director General to initiate a detailed investigation.
Meanwhile, IndiGo, which has India’s largest carrier with a share of more than 60% of domestic air traffic, was recently hit by a major operational disruption, leading to the cancellation of thousands of flights from early December. The airline has already processed ticket refunds exceeding ₹800 crore.
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The airline had to cancel about 4,500 flights last week due to inadequate pilot roster planning, leaving tens of thousands of passengers stranded. The civil aviation regulator then ordered the airline to reduce its domestic winter schedule by 10%.
The Indian carrier had on December 10 cut its capacity and passenger unit revenue forecast for the third quarter in response to a reduction in its winter schedule.
IndiGo has hired Chief Aviation Advisors LLC, under the direction of seasoned aviation specialist Captain John Illson, to conduct a "root cause analysis of the recent operational disruption" that impacted thousands of travellers nationwide, particularly in major air travel hubs.
It estimated a payout of more than ₹500 crore ($55.19mn) in total to customers impacted by the carrier's mass cancellations last week. It has also been hit with a tax penalty notice of ₹58.75 crore.
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IndiGo, however, maintains that the order is flawed and says it has strong grounds to challenge it.
The operational meltdown is linked to the new Flight Duty Time Limitation (FDTL) rules that came into effect on November 1. These rules extend rest hours for pilots, restrict night flying duties, and mandate 48 hours of weekly rest.
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