Synopsis
India’s aviation sector is bracing for new competition. Two airlines, Al Hind Air and FlyExpress, have received government approval. Shankh Air, already cleared, plans to launch operations next year. This move aims to break the market’s duopoly, currently dominated by IndiGo and the Air India Group.
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ReutersIndia’s civil aviation market is set for fresh competition, with two new airlines — Al Hind Air and FlyExpress — receiving no objection certificates (NOCs) from the Union civil aviation ministry. Another carrier, Uttar Pradesh-based Shankh Air, which already holds an NOC, is expected to begin operations in 2026, adding to a sector dominated by just a few major players.
The approvals come as the government signals renewed intent to widen participation in one of the world’s fastest-growing domestic aviation markets. At present, only nine scheduled domestic airlines are operational. The number shrank further in October after regional carrier Fly Big suspended scheduled flights.
Al Hind Air is being promoted by the Kerala-based alhind Group, while FlyExpress joins a list of aspiring carriers seeking to enter a market where scale and pricing power remain concentrated. Shankh Air, already cleared, is expected to follow with commercial operations next year.
The push for new entrants has gained urgency amid growing concern over the industry’s apparent duopoly. IndiGo and the Air India Group — which includes Air India and Air India Express — together control more than 90 per cent of the domestic market. IndiGo alone has a market share exceeding 65 per cent.
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These concerns sharpened earlier this month following major operational disruptions at IndiGo, which rippled across the network and highlighted the risks of heavy dependence on a single carrier in a rapidly expanding market.
Civil Aviation Minister K Rammohan Naidu confirmed the latest approvals in a post on X on Tuesday. He said the ministry had met teams from Shankh Air, Al Hind Air and FlyExpress, noting that while Shankh Air already held its clearance, the other two carriers received their NOCs this week.
Naidu reiterated that encouraging more airlines has been a consistent policy objective, given the pace at which Indian aviation is growing. He pointed to government schemes such as UDAN, which aim to improve regional connectivity and have helped smaller carriers gain a foothold.
Under UDAN, airlines such as Star Air, India One Air and Fly91 have expanded services to underserved routes, playing a role in linking smaller cities to the national aviation network. The minister said there remains scope for further growth in this segment.
According to the latest data from the Directorate General of Civil Aviation, India’s scheduled carriers currently include IndiGo, Air India, Air India Express, state-owned Alliance Air, Akasa Air, SpiceJet, Star Air, Fly91 and IndiaOne Air.
The arrival of new airlines also comes against the backdrop of past failures. In recent years, carriers such as Jet Airways and Go First ceased operations after being overwhelmed by debt and operational challenges, underscoring the sector’s volatility.
(With inputs from PTI)