IndiGo Shares Slide -2.5% After CCI Orders Detailed Probe Into Business Practices

Shares of InterGlobe Aviation Ltd, the parent of India’s largest airline IndiGo, came under pressure on Thursday after the Competition Commission of India (CCI) directed a detailed investigation into alleged unfair business practices by the carrier. The stock fell about 2.5% in early trade, reflecting market concern over heightened regulatory scrutiny.

CCI Orders Detailed Probe

The CCI has instructed its Director General to conduct an extensive probe into IndiGo’s operations, particularly whether the airline abused its dominant market position following widespread flight cancellations in late 2025. The investigation will explore if Indigo’s conduct limited competition or consumer choice, especially during periods of high travel demand.

The watchdog’s order gives the Director General 90 days to investigate the airline’s practices, including scheduling decisions, capacity utilisation, and pricing behaviour. This action marks a notable escalation in regulatory oversight of India’s aviation sector.

Shares React To Regulatory Risk

Investors responded to the probe directive by selling down IndiGo shares. On Thursday, the stock traded roughly 2.5% lower compared with the previous close, underperforming broader market benchmarks. At the time of writing, the stock was 2.01% down. Market participants noted increased trading volumes, suggesting fresh selling interest rather than light profit-booking.

The slide in IndiGo’s share price contrasts with subdued movements in some other airline stocks, where prices held relatively steady or showed only modest weakness.

What triggered the probe? 

The CCI’s move follows a period of operational disruption last year when the airline cancelled a large number of flights, straining customer goodwill and drawing scrutiny from multiple regulators. Consumer groups and industry watchers had flagged concerns that such cancellations, when the airline held a significant share of domestic traffic, may have disadvantaged travellers and competitors alike.

By formally ordering a detailed investigation, the competition authority aims to assess whether IndiGo’s decisions crossed the line into abuse of dominance under competition law.

A prolonged inquiry or unfavourable findings could lead to penalties or operational constraints, factors that may temper near-term stock performance.

At the same time, long-term demand for air travel in India remains robust, and IndiGo continues to hold a leadership position in the domestic market. How the regulatory process unfolds will be critical for investors assessing risk versus growth potential.

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