InterGlobe Aviation shares faced a decline of nearly 4% during Thursday morning trade following an order from India’s Competition Commission (CCI) to investigate IndiGo on grounds of alleged unfair business practices.
The stock decreased by 3.65% at BSE, closing at Rs 4,782.45, and by 3.63% at NSE, settling at Rs 4,780.30.
The probe comes almost two months after IndiGo, the largest airline in India, canceled thousands of flights due to operational issues, inconveniencing numerous passengers.
According to a 16-page order from the CCI, preliminary findings suggest IndiGo’s mass cancellations may have purposefully created an artificial shortage of flights, restricting market access during high demand periods. The investigation will also examine if this behavior constitutes abuse of a dominant position as defined under Section 4 of the Competition Act.
(With inputs from agencies.)
