India Gets Two New Airlines After Recent IndiGo Disruptions to Boost Competition

India has granted initial regulatory clearances to two new airlines, Al Hind Air and FlyExpress, as the government moves to boost competition in the country’s fast-growing aviation sector following recent large-scale flight disruptions by market leader IndiGo.

The Ministry of Civil Aviation has issued no-objection certificates (NOCs) to the two carriers, allowing them to proceed with further regulatory approvals required to begin operations. Civil Aviation Minister Ram Mohan Naidu confirmed the development in a post on X on Tuesday.

“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.

Move follows IndiGo crisis

The approvals come weeks after widespread disruption across India’s airports when IndiGo cancelled around 4,500 flights due to staff planning challenges linked to updated flight duty time limitation rules. The cancellations left thousands of passengers stranded and reignited concerns about the lack of competition in the domestic aviation market.

IndiGo currently controls about 65% of India’s domestic aviation market, while the Air India group accounts for roughly 27%, according to industry data. Smaller airlines make up the remaining share, highlighting the sector’s high concentration.

Following the December disruption, IndiGo said it had restored its network and resumed more than 1,000 flights. The aviation ministry also directed the airline to clear pending passenger refunds on December 6, after which IndiGo issued an apology and pledged to rebuild customer trust.

Government push for more players

Naidu said the government is actively encouraging new airline entrants to strengthen resilience, improve connectivity, and expand consumer choice in what is already the world’s fastest-growing aviation market. He pointed to initiatives such as the UDAN regional connectivity scheme as key enablers for smaller carriers.

“It has been endeavour of the ministry to encourage more airlines in Indian aviation,” Naidu said, adding that UDAN has helped regional carriers such as Star Air, IndiaOne Air, and Fly91 expand services, with further growth potential remaining.

New entrants eye 2026 launch

Al Hind Air, promoted by the Kerala-based Alhind Group, plans to operate turboprop aircraft and initially focus on routes in southern India, according to information published on its website. The airline is currently in the process of securing its air operator certificate.

FlyExpress has yet to disclose operational details but has indicated plans to launch services in the near future. Uttar Pradesh-based Shankh Air, which has already received its NOC, is also expected to begin operations in 2026.

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