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Informist, Wednesday, Mar. 11, 2026

 

--CCI rejects plea vs InterGlobe Aviation, Air India on high cancellation fee 

 

NEW DELHI – The Competition Commission of India Wednesday rejected a plea alleging InterGlobe Aviation Ltd., parent of the country's largest airline IndiGo, and Air India Ltd. charged "extortionate amounts" in the name of airline ticket cancellation fees. Complainant Kannadiputhur Sundararaman Suresh's allegation of abuse of dominance does not warrant further examination as these companies have in place a system for refund of tickets and it is possible for passengers to have substantial refundable tickets if they opt for that category of ticket, said the competition regulator.

 

A passenger has options to select a fare that will give him the maximum or full refund depending on the airline and type of airfare selected, and time of cancellation of the ticket, amongst other factors, said the antitrust regulator. The refund and cancellation terms are disclosed to passengers in advance, it said. These are applied equally to all consumers and not in a discriminatory, unfair or exclusionary manner, it added.

 

The regulator said that the remedy of the complainant for alleged breach of the Indian Contract Act, 1872, in the present case does not lie before the Competition Commission of India. Further, dissatisfaction with a contractual term or desire for more favourable terms and conditions does not constitute violation of the Competition Act, 2002, said the commission.

 

It noted that the complainant had also made a passing reference to the cancellation of several thousands of flights by InterGlobe Aviation in the month of December, 2025. However, the gravamen of the present matter is on a totally different subject and cannot be considered to have a bearing on the subject of cancellation of flights by InterGlobe Aviation, said the commission. In any case, the commission has ordered an investigation against InterGlobe Aviation in relation to its mass cancellation of flights in December 2025, it said. IndiGo saw an unprecedented level of flight cancellations due to crew shortage, following enforcement of the new flight duty time limitation rules. 

 

The regulator rejected Suresh's allegation that both the companies were acting individually and in concert and had been maintaining unconscionable and illegal rates of cancellation charges. "The commission is of the view that the concept of collective dominance is beyond the purview of the (Competition) Act," said the regulator.

 

The petitioner had argued that both the airline companies were engaging in anti-competitive practice by acting in concert that had the effect of determining the cancellation charges of air tickets. The airlines' practice of levying penal charges for ticket cancellation by a passenger was not only irrational and indiscriminate, but also unfair, abuse of dominant position and violative of the law of contract, said the petitioner.

 

Suresh said that the cancellation of tickets does not put the airline in any position worse than it was prior to the booking, and, thus, the airline does not suffer any loss on account of the cancellation. The question of loss would arise only if, as a direct result of the cancellation, the airline is prevented from selling that ticket to another potential passenger, said Suresh.

 

On Wednesday, shares of InterGlobe Aviation Ltd. ended 0.7% lower at INR 4,350.70 on the National Stock Exchange.  End

 

Reported by Surya Tripathi

Edited by Avishek Dutta

 

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