New Delhi — In a significant move to address recent aviation market turbulence, the Indian government has formally requested detailed fare data from the country’s leading airlines. This directive comes as antitrust authorities investigate allegations of market abuse following massive flight disruptions in December.
DGCA Seeks Pricing Details from Major Carriers
The Directorate General of Civil Aviation (DGCA) has issued a directive to IndiGo, Air India, Air India Express, SpiceJet, and Akasa Air. The aviation regulator is demanding specific data regarding:
- Average fares charged on every route operated.
- Pricing breakdown for both economy and premium economy seats.
- Specific timeframe: The data must cover the period from December 1 to December 15.
According to government documents reviewed by Reuters, the request was sent via email on January 1. The email explicitly asks for “fare data on affected routes” during the period of disruption.
Why the Data is Being Collected?
While the primary investigation focuses on IndiGo, the Competition Commission of India (CCI) requested this broader dataset. A government source indicated that obtaining fare details from all major players helps authorities “assess airfare patterns across airlines.” This comparative data will determine if the price surges were an industry-wide phenomenon or specific to one carrier’s operational decisions.
The Context: December’s Aviation Crisis
The probe follows a chaotic month for Indian aviation, primarily centered on IndiGo, which commands a 65% market share.
- Mass Cancellations: Pilot shortages forced IndiGo to cancel approximately 4,500 flights in December alone.
- Stranded Passengers: The cancellations left thousands of passengers stranded, leading to nationwide outrage.
- Price Surges: Travelers reported sky-rocketing ticket prices on affected routes immediately following the cancellations, prompting the government to intervene with temporary price caps.
CCI Investigates “Abuse of Dominance”
The Competition Commission of India (CCI) has launched an inquiry to determine if IndiGo abused its dominant market position.
The Core Allegation
The investigation stems from complaints accusing the airline of a specific malpractice: canceling scheduled flights and subsequently offering seats on the same routes at significantly higher prices.
If proven, this would constitute a violation of competition laws. While the current data request includes Air India, SpiceJet, and Akasa, there is currently no indication that the antitrust investigation has expanded to include these other airlines.
Airline Responses
As of now, the airlines have remained tight-lipped regarding the government’s demand:
- Akasa Air declined to comment.
- IndiGo, Air India, and SpiceJet have not yet responded to queries regarding the private email.
- IndiGo has also not released an official statement regarding the CCI abuse of dominance case.
The collected data will likely play a critical role in the CCI’s final report on whether passengers were unfairly targeted by predatory pricing during the peak holiday travel season.
Why is the Indian government investigating IndiGo?
The Competition Commission of India (CCI) is investigating IndiGo for potential “abuse of dominant market position.” The core allegation is that the airline may have cancelled scheduled flights citing operational issues and then sold seats on the same routes at significantly higher prices to desperate passengers.
Which airlines have been asked to submit fare data?
The Directorate General of Civil Aviation (DGCA) has demanded fare data from IndiGo, Air India, Air India Express, SpiceJet, and Akasa Air. While IndiGo is the primary focus of the probe, data from other airlines is being collected to compare industry-wide pricing patterns.
Did flight prices really go up after the cancellations?
Yes. Reports indicate that fares surged immediately following the mass cancellations in December. The government is specifically looking at fare data from December 1 to December 15 to determine if these price hikes were artificial or predatory.
Why were so many IndiGo flights cancelled Recently?
The official reason cited for the disruption was a severe pilot shortage. This operational crisis forced IndiGo, which holds 65% of the Indian market, to cancel approximately 4,500 flights in just one month.
What will happen if IndiGo is found guilty of “abuse of dominance”?
If the CCI finds that IndiGo violated competition laws by manipulating supply (cancelling flights) to hike prices, the airline could face heavy penalties and strict regulatory action to prevent future occurrences.
Are Air India and SpiceJet also being investigated for fraud?
Currently, no. The antitrust investigation is focused on IndiGo. The other airlines (Air India, SpiceJet, Akasa) have been asked to provide data primarily for comparison purposes to help authorities understand what “normal” pricing looked like during that period.
Is it safe to book IndiGo flights right now?
Yes, it is safe in terms of safety regulations. However, due to the ongoing pilot shortage issues mentioned in reports, travelers might face a higher risk of schedule changes or cancellations compared to periods of normal operation.
How can I report unfair ticket prices?
Passengers can file complaints through the AirSewa portal or app, which is managed by the Ministry of Civil Aviation. Specific grievances regarding competition and unfair trade practices can also be directed to the Competition Commission of India (CCI).
