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HomeEconomyAntitrust watchdog Competition Commission to probe IndiGo flight disruptions

Antitrust watchdog Competition Commission to probe IndiGo flight disruptions

While the commission didn’t mention provisions under which IndiGo's market domination would be examined, Competition Act 2002 prohibits abuse of dominant position by any enterprise.

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New Delhi: The Competition Commission of India (CCI) is set to look into the massive disruptions in flight operations by IndiGo earlier this month that caused significant hardships to passengers. 

“The Competition Commission of India (CCI) has taken cognizance of Information filed against IndiGo in the context of the recent flight disruptions witnessed in the aviation sector, across various routes,” the commission said in a brief statement.

“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 airline holds about 65 percent of India’s domestic aviation market share.

Although the CCI press release does not mention the provision under which IndiGo’s dominant market position would be examined, Section 4 of Competition Act 2002 prohibits abuse of dominant position by any enterprise or group. 

This abuse is constituted if the enterprise or group imposes unfair or discriminatory conditions in purchase or sale of goods or services, or indulges in discriminatory prices in purchase or sale. 

Any person can file an application or an ‘information’ before the Commission, which then judges if there is a prima facie case or not. If it finds that there is one, the CCI orders an investigation into the matter, and then gives its judgment on the basis of this probe. 


Also Read: How to prevent the next IndiGo crisis—compulsory resource mapping, DGCA overhaul


IndiGo finding ‘wings again’

IndiGo cancelled or rescheduled hundreds of flights over several days earlier this month, plunging the entire sector into chaos. Airports were overwhelmed, and passengers endured significant inconvenience.

On Thursday though, IndiGo CEO Pieter Elbers told employees that the operations have stabilised, with the network being restored to 2,200 flights.

“Dear IndiGo colleagues, through the storm, we are finding our wings again. The worst is behind us. These last two weeks have been very challenging for all of us,” he was quoted as saying in an internal message to staff.

‘Will take strict action’

On 8 December, Civil Aviation Minister Kinjarapu Ram Mohan Naidu had told Rajya Sabha that the government is not taking the IndiGo flight cancellations lightly, pointing out that the airline’s internal operations planning and its crew rostering system were at fault.

“Passengers faced a lot of difficulties. We are not taking the situation easily. We are doing an inquiry, and we will take very, very strict action. We will set an example for all the airlines. If there is any non-compliance, or non-adherence by any entity or any organisation or any operation functioning in the civil aviation industry, we will take very strict action,” said Naidu.

He further explained that the new flight duty time limitation (FDTL) guidelines came into effect on 1 November, after “thorough consultation with all stakeholders”, including IndiGo. The guidelines include stricter rules on overnight flights for pilots and their weekly rest, which led to multiple flight cancellations earlier this month.

“We care for the crew, we care for the pilots, and we care for the safety of the entire system; we care for the passengers. As the ministry, we made it very clear to all the airlines that they have to follow the rules,” Naidu had said.

(Edited by Ajeet Tiwari)


Also Read: IndiGo chaos forces DGCA to look inward—spotlight is back on the regulator


 

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