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Probe ordered against IndiGo over alleged surge pricing after mass flight cancellations

This comes after a flyer claimed that after cancelling its own services in December 2025, IndiGo offered seats on the same routes at “much higher” fares.

Dipak Mondal

The Competition Commission of India (CCI) has ordered a detailed investigation into InterGlobe Aviation Ltd, which operates IndiGo, over allegations that the airline cancelled a large number of flights in December 2025 and subsequently charged sharply higher fares to stranded passengers.

The antitrust regulator, in an order passed on 4th February, held that the allegations raised by Bengaluru-based flyer Kartikeya Rawal warrant a probe by the Director General (DG) to examine possible abuse of dominant position by the country’s largest airline. The regulator ordered the investigation report within a period of 90 days.

The complaint stems from events during the first week of December 2025, when IndiGo allegedly cancelled hundreds of flights, leaving lakhs of passengers stranded. The informant claimed that after cancelling its own services, IndiGo offered seats on the same routes at “much higher” fares, forcing passengers to either wait for days or pay steep prices for return travel.

Rawal cited his own experience of a cancelled Delhi–Goa–Bengaluru return booking on December 5, 2025, for which he had paid Rs 7,173. After the cancellation, he was unable to secure an alternative at reasonable rates and eventually travelled two days later on another IndiGo flight for Rs 17,000.

He alleged that the conduct amounted to abuse of dominance, arguing that fares during the disruption were significantly higher than historical averages and recent pricing trends.

In its response dated January 10, 2026, IndiGo did not provide the operational and pricing data sought by the Commission. Instead, it challenged the CCI’s jurisdiction, contending that the matter falls squarely within the domain of the Directorate General of Civil Aviation (DGCA) under the Bhartiya Vayuyan Adhiniyam, 2024 and the Aircraft Rules, 1937.

The airline argued that airfare oversight, excessive pricing, and market practices in civil aviation are governed by a complete and self-contained regulatory framework administered by the DGCA. It further cited the Supreme Court’s ruling in Bharti Airtel vs CCI and the Delhi High Court’s decision in the Monsanto case to argue that sectoral regulators should have primacy.

IndiGo also submitted that consumer grievances over flight cancellations or fares are better addressed under the Consumer Protection Act rather than competition law.

However, in a crucial clarification to the CCI, the DGCA stated that it does not regulate airfares and does not possess economic regulatory powers over pricing under the current legal framework. It said its role is limited to ensuring transparency, which requires airlines to publish tariff details.

The DGCA informed the CCI that route-wise and fare data for the period from December 1 to 15, 2025 is not maintained by it and had to be sought from airlines. While SpiceJet, Air India, Air India Express and Akasa responded, IndiGo sought additional time.

Rejecting IndiGo’s argument and referring extensively to the Supreme Court’s judgment in Bharti Airtel, the CCI observed that sectoral regulation and competition law operate in distinct but complementary domains.

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