IndiGo shares trade flat as Competition Commission to look into flight cancellations; all you need to know

The Competition Commission of India (CCI) in a release said that it has taken cognisance of information filed against IndiGo in the context of the recent flight disruptions witnessed in the aviation sector across various routes.

"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," CCI added.

IndiGo, which has a domestic market share of over 65%, cancelled hundreds of flights starting from December 2, causing hardships to thousands of passengers.

While aviation safety regulator DGCA is probing the flight disruptions apart from stepping up the scrutiny of IndiGo's operations, there are concerns in certain quarters about whether the airline's dominant position could also have been a contributing factor.

Other recent developments

On December 18, IndiGo Chief Executive Officer Pieter Elbers told employees the “worst is behind us” after an unprecedented flight disruption earlier this month, saying the airline had begun stabilising operations.

In a video message circulated internally, Elbers said IndiGo has restored its network to about 2,200 flights a day after stabilising operations that were severely hit in the first half of December.

“Through the storm, we are finding our wings again. The worst is behind us,” Elbers said, adding that the airline would now focus on strengthening resilience, conducting a full root-cause analysis and rebuilding systems after the crisis.

IndiGo cancelled hundreds of flights between December 1 and December 9 due to crew shortages and planning failures linked to the implementation of new pilot duty time and rest regulations that came into force on November 1.

Elbers told employees that multiple factors appeared to have compounded the disruptions and urged staff to avoid speculation while a comprehensive investigation was carried out.

Last week, IndiGo said it expects to pay more than ₹500 crore in compensation to customers affected by cancellations and severe delays.

IndiGo share price

At 9:53 AM, shares of InterGlobe Aviation were trading at ₹5,121.50 apiece on NSE, gaining 0.12%. It had touched an intraday high of ₹5,160.50 per share in the early session.

The stock has gained 5% in the last five trading sessions, while for a month’s time it has fallen 11%. However, on a year-to-date basis, IndiGo shares have gained 11.5%.

The company’s market capitalisation stands at ₹1.98 lakh crore.