The Competition Commission of India on Wednesday ordered a detailed probe against IndiGo for alleged unfair business practices, a little over 2 months after the country’s largest airline cancelled thousands of flights due to operational disruptions.
In a 16-page order, the regulator said that the large-scale cancellations, which formed a significant share of IndiGo’s scheduled capacity, amounted to a withholding of services from the market. The Commission said this created artificial scarcity and restricted consumer access to air travel during a period of peak demand.
The CCI noted that such conduct by a dominant enterprise could be viewed as restricting the provision of services under Section 4(2)(b)(i) of the Competition Act, which deals with abuse of dominant position.
Observing that, on a prima facie basis, the airline’s actions appeared to have caused an appreciable adverse effect on competition in India, the Commission directed its Director General to carry out a detailed investigation.
IndiGo chaos
IndiGo had faced widespread operational issues in early December, following which the Directorate General of Civil Aviation curtailed the airline’s winter schedule by 10 per cent until February 10.
According to the regulator, between December 3 and December 5, a total of 2,507 flights were cancelled, and 1,852 flights were delayed, affecting more than 3 lakh passengers at airports across the country.
IndiGo to adjust long-haul flights
IndiGo on Wednesday said it will adjust its long-haul operations using leased Boeing Dreamliners as it deals with external operational constraints, including suspending services to Copenhagen from February 17.
The airline said the changes are being necessitated by uncertainties related to Iranian airspace and congestion at airports. As part of the revised schedule, IndiGo will also reduce the frequency of flights on the Delhi–London Heathrow and Delhi–Manchester routes.
In a statement, the carrier said its wide-body operations have been impacted by continuously changing airspace restrictions due to geopolitical developments, as well as congestion at airports in India and overseas. These factors have led to longer flight and block times, putting pressure on the airline’s Boeing 787 9 schedule, which is currently operated with 6 wide-body aircraft.
IndiGo said flights to and from Copenhagen will remain suspended from February 17 until further notice. At present, the airline operates thrice weekly services between Mumbai and Copenhagen.
