IndiGo shares tumble! InterGlobe Aviation shares plunge 3% as CCI launches detailed investigation – The Times of India

Shares of InterGlobe Aviation fell sharply on Thursday after the Competition Commission of India (CCI) ordered initiation of a detailed investigation into IndiGo for alleged unfair trade practices. The stock fell more than 3% during the morning session. On the BSE, shares of the airline’s parent fell 3.65% to Rs 4,782.45, while on the NSE they fell 3.63% to Rs 4,780.30. At 1.55 pm, IndiGo was down 72 points or 1.4% at 4,888 on NSE, while its stock was down 1.5% on the Bombay Stock Exchange. The selling pressure followed a 16-page order issued by the competition authority on Wednesday that launched a full investigation into IndiGo. The order comes nearly two months after the airline canceled thousands of flights due to operational problems, an episode that led to widespread inconvenience for passengers. Based on a review of airline data and information submitted by aviation regulator DGCA, the CCI said it was prima facie of the view that IndiGo had abused its dominant position in the market. The regulator noted that the scale of flight cancellations represented a significant portion of the airline’s scheduled capacity. The commission noted that the cancellations amounted to an effective withdrawal of services from the market, resulting in artificial scarcity and reducing consumers’ access to air travel during periods of high demand. “Such conduct on the part of a dominant undertaking may be regarded as a restriction of services under Section 4 (2) (b)(i) of the Act,” the CCI said. Article 4 of the Competition Act relates to abuse of a dominant position. Citing a prima facie finding of appreciable adverse effect on competition in India, the CCI directed its Director General (DG) to conduct a detailed inquiry into the matter.