India gets two new airlines after recent IndiGo disruptions to boost competition

Dubai: India’s civil aviation ministry has granted initial clearances to two new airlines, weeks after mass flight cancellations by market leader IndiGo exposed concerns over limited competition in the country’s rapidly expanding aviation sector.

The ministry has issued no-objection certificates (NOCs) to regional carrier Al Hind Air and startup FlyExpress, Civil Aviation Minister Ram Mohan Naidu said in a post on X on Tuesday. The approvals allow the airlines to proceed with further regulatory steps required to begin operations.

“Over the last one week, pleased to have met teams from new airlines aspiring to take wings in Indian skies — Shankh Air, Al Hind Air and FlyExpress. While Shankh Air has already got the NOC from the Ministry, Al Hind Air and FlyExpress have received their NOCs this week,” Naidu said.

The clearances come after significant disruption earlier this month, when IndiGo cancelled about 4,500 flights due to staff planning issues linked to updated flight duty time limitation rules. Thousands of passengers were stranded across airports, prompting renewed calls for greater competition in the domestic market.

IndiGo holds about 65% of India’s domestic aviation market, while the Air India group controls roughly 27%, according to industry data. Smaller airlines account for the remainder, underscoring the sector’s high level of concentration.

Following the December disruption, IndiGo said it has restored its network, resuming more than 1,000 flights. The aviation ministry ordered the airline on December 6 to clear pending passenger refunds, after which IndiGo apologised and said it was committed to rebuilding customer trust.

Naidu said the government is actively encouraging new entrants to improve resilience and choice in what is already the world’s fastest-growing aviation market. He credited policy initiatives such as the UDAN regional connectivity scheme for helping smaller carriers expand services.

“It has been endeavour of the ministry to encourage more airlines in Indian aviation… Schemes like UDAN have enabled smaller carriers Star Air, India One Air, Fly91 etc. to play an important role in regional connectivity, and there is more scope for further growth,” he said.

Al Hind Air, promoted by Kerala-based Alhind Group, plans to operate turboprop aircraft and initially focus on southern India, according to its website. The airline is currently seeking an air operator certificate. FlyExpress has not yet disclosed operational details, though its website says it plans to launch soon.

Uttar Pradesh-based Shankh Air, which has already received an NOC, is also expected to begin operations in 2026.

India has granted permits to six air operators since 2020, including regional carriers, the government told lawmakers earlier this year. Current scheduled airlines include IndiGo, Air India, Air India Express, Akasa Air, SpiceJet, Alliance Air, Star Air, Fly91 and IndiaOne Air, according to the aviation regulator.