IndiGo May Faces Antitrust Probe After 10% Flight Cut; CEO Pieter Elbers’ Job Under Scrutiny

A day after the Directorate General of Civil Aviation (DGCA) ordered IndiGo to slash its winter flight schedule by 10%, a report said the airline may also face an antitrust investigation. The actions follow a major operational disruption that led to thousands of flight cancellations last week, stranding passengers across airports nationwide.

Some pilot unions later alleged that the disruption was “artificially created” to pressure the ministry and the DGCA against implementing the revised Flight Duty Time Limitations (FDTL) rules.

The Ministry of Civil Aviation has formed a four-member committee under the DGCA to examine the recent disruptions and has issued a show-cause notice to the carrier.

According to the Economic Times, India’s competition watchdog is considering a preliminary review of IndiGo to determine whether the country’s largest airline violated antitrust norms, particularly those relating to abuse of market dominance by curbing services or imposing unfair conditions on passengers.

A government official told the publication that there is a “strong basis” for the Competition Commission of India (CCI) to examine the issue, although the DGCA will continue to lead the government’s broader investigation. The official added that the CCI is closely monitoring developments and will soon decide whether to initiate a probe.

IndiGo controls roughly 65% of India’s domestic aviation market and operates more than 2,200 daily flights. At the peak of the disruption, cancellations rose to more than 1,000 flights on December 5. Reports estimate the airline has so far cancelled over 5,000 flights this month because of a significant crew shortage after failing to implement updated pilot-rest norms on time.

Section 4 of the Competition Act prohibits dominant companies from exploiting their position by placing unfair or discriminatory conditions on consumers, limiting services or engaging in restrictive practices. The CCI can open an inquiry on its own, based on complaints or information from stakeholders, or through references from central or state governments.

If, after a preliminary assessment, the CCI finds evidence of potential anti-competitive behaviour, it assigns its director general to conduct a detailed investigation and submit a report.

The report follows two consecutive DGCA orders issued after its show-cause notice to IndiGo. In its first order on 9 December, the regulator asked the airline to cut around 5% of flights from its winter schedule. A revised directive later increased the reduction to 10%.

Meanwhile, Civil Aviation Minister K Rammohan Naidu told a news broadcaster that, if necessary, the government may even consider removing IndiGo CEO Pieter Elbers.

“If it comes to that, I will do it. I will charge them with all the penalties that apply. I will look into all of those aspects,” he said in response to a question about the possibility of sacking the CEO.