Competition Commission of India dismissed a complaint alleging IndiGo and Air India abused market dominance through cancellation charges, saying refund systems exist and no prima facie violation of competition law was found.
The Competition Commission of India (CCI) on Wednesday dismissed a complaint alleging abuse of dominant position by InterGlobe Aviation, the parent company of IndiGo, and Air India over air ticket cancellation charges.
The complainant had alleged that the two domestic carriers were imposing “unconscionable and illegal” cancellation charges and setting arbitrary terms and prices for airline services.
According to the complaint, InterGlobe Aviation, which operates IndiGo, holds more than 65% share of the domestic aviation market, while Air India accounts for around 27%. Together, the two airlines were said to control nearly 90% of the market, raising concerns about dominance and potential anti-competitive conduct.
The complainant also referred to a personal booking to support his claim. He said he had purchased two tickets for ₹12,488 through an online travel portal but cancelled them within minutes after noticing incorrect travel dates. According to the complaint, only ₹3,054 was refunded, while ₹9,434 was deducted as cancellation and related charges.
The complainant also argued that under Section 74 of the Indian Contract Act, companies can claim only reasonable compensation for breach of contract. Retaining most of the ticket fare as cancellation charges, even when the airline may not incur an actual loss, was alleged to amount to unjust enrichment.
After reviewing the information submitted, the competition watchdog said the allegations did not establish any prima facie violation of competition law.
Refund options disclosed to passengers
In its order, the Commission said the airlines have mechanisms that allow passengers to receive refunds depending on the type of fare selected and the timing of ticket cancellation.
“A passenger has options to select a fare that will give him the maximum or full refund depending on the airline and type of air fare selected, time of cancellation of the ticket, amongst other factors,” the order stated.
The regulator also noted that refund and cancellation terms are disclosed to passengers beforehand and are applied equally to all consumers.
“These are applied equally to all consumers and not in a discriminatory, unfair or exclusionary manner,” the order said.
No violation of competition law
The CCI concluded that the complaint did not make out a case of violation under the relevant provisions of the Competition Act.
“In view of the information provided, the Commission is of the opinion that no prima facie case of contravention of Sections 3 and 4 of the Act is made out against OP-1 and OP-2,” the order said, directing the matter to be closed under Section 26(2) of the Act.
Sections 3 and 4 of the Act deal with anti-competitive agreements and abuse of dominant position respectively.
Joint probe request rejected
The regulator also rejected a separate application by the complainant seeking a joint investigation with another ongoing case related to mass flight cancellations by IndiGo in December 2025.
According to the CCI, the issues involved in that case are different from the allegations raised in the present complaint, and therefore there was no basis for conducting a joint investigation.
Source: Storyboard18
