Consumer moves NCLAT over CCI's dismissal of IndiGo, Air India cancellation fee case

New Delhi: A consumer has challenged the Competition Commission of India's (CCI) decision to dismiss allegations that IndiGo and Air India impose excessive and unfair air ticket cancellation charges, and has filed an appeal before the National Company Law Appellate Tribunal (NCLAT).

The appeal, filed by Kannadiputhur Sundararaman Suresh, was listed before the Delhi bench of NCLAT on Monday but could not be taken up due to paucity of time.

The plea challenges the fair trade regulator's March 2026 order, which closed the complaint at the preliminary stage after finding no prima facie violation of the Competition Act.

Suresh had alleged before the CCI that IndiGo and Air India, which together account for over 90% of India's domestic aviation market, abused their market position by imposing excessive cancellation charges on passengers.

He argued that the similarity in the airlines' cancellation fee structures reflected anti-competitive conduct, amounting to cartelization under Section 3 and abuse of dominance under Section 4 of the Competition Act.

Suresh said he booked tickets worth ₹12,488, cancelled them shortly after discovering he had selected the wrong travel dates, and received only ₹3,054 as a refund after deductions towards cancellation charges and other fees.

However, the CCI declined to order a detailed investigation. The regulator said there was no evidence of any agreement, arrangement, understanding or concerted practice between IndiGo and Air India to determine or influence cancellation charges. It held that similar pricing policies alone were insufficient to establish cartelization.

The Commission also observed that the complaint failed to establish abuse of dominance by either airline individually. It noted that a high combined market share of competing enterprises does not automatically establish dominance or anti-competitive conduct under the Competition Act. Accordingly, the CCI closed the matter under Section 26(2), holding that no prima facie case existed to direct an investigation by the Director General.

Aggrieved by the decision, Suresh approached the NCLAT seeking to set aside the CCI's order and direct the competition watchdog to investigate the practices.

Emails seeking comments from Air India, IndiGo and the Competition Commission of India (CCI) remained unanswered at the time of publication.

If the NCLAT admits the appeal, the case is likely to be closely watched by the aviation industry and consumer groups, as airline cancellation charges have long been a contentious issue for passengers.

In February 2026, the Directorate General of Civil Aviation (DGCA) introduced passenger-friendly refund and cancellation rules to improve transparency and consumer protection. Effective March 2026, the revised norms provide a 48-hour window for passengers to cancel or modify bookings without additional charges, subject to specified conditions.

The rules also require airlines to process refunds within 14 working days and mandate greater transparency in the disclosure of cancellation charges.

DGCA data for 2025 shows IndiGo holds nearly 64% of the domestic aviation market, while the Air India Group accounts for about 27%.