IndiGo is facing fresh regulatory and legal trouble as the Competition Commission of India (CCI) is likely to launch a formal inquiry into the airline’s business practices. The move comes after IndiGo cancelled more than 5,000 flights in recent weeks due to severe crew shortages and operational disruptions.
The CCI is examining whether IndiGo, which holds nearly 65% of India’s domestic aviation market, may have misused its dominant market position and caused inconvenience to passengers by limiting services or imposing unfair conditions. If the regulator finds a prima facie case, a detailed antitrust investigation could follow.
At the same time, the Directorate General of Civil Aviation (DGCA) has intensified its scrutiny of the airline. The aviation regulator issued a show-cause notice to senior management after repeated flight disruptions linked to the implementation of new pilot duty and rest norms.
Adding to pressure, the Indian government has ordered airlines, including IndiGo, to cut flight operations by 5–10% to stabilise schedules and reduce passenger inconvenience. This has brought IndiGo’s stock into sharp focus in the markets.
If the CCI proceeds with a full probe and finds violations, IndiGo could face financial penalties, operational restrictions, and tighter regulatory oversight. The situation has raised wider concerns about India’s dependence on a single dominant airline and the need for stronger competition in the aviation sector.
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