Centre Clears 3 New Airlines After IndiGo Disruptions to Boost Competition

The Centre has approved three new airlines—Shankh Air, Al Hind Air and FlyExpress—by issuing no-objection certificates (NOCs), as the government moves to reduce heavy reliance on a handful of carriers following recent disruptions at IndiGo.

The clearances come amid rapid growth in domestic air travel but limited competition, with the market dominated by a few large players. Officials say adding new airlines will gradually expand capacity and offer passengers more choice.

Why the Government Is Pushing for More Airlines

India currently has only nine scheduled domestic airlines in operation, a number that dipped further after regional carrier Fly Big suspended scheduled services in October. The sector is largely controlled by IndiGo and the Air India Group—including Air India and Air India Express—which together account for over 90% of domestic traffic. IndiGo alone holds more than 65%.

Earlier this month, widespread flight disruptions at IndiGo highlighted the risks of overdependence on a single carrier in a fast-expanding market, prompting renewed focus on building sectoral depth.

Who Are the New Entrants

Al Hind Air is promoted by the Kerala-based Alhind Group, which already operates across travel and related services. FlyExpress is another proposed entrant targeting domestic routes amid sustained demand. Shankh Air, which received its NOC earlier, is expected to begin operations in 2026. All three must still complete regulatory approvals and operational readiness before launching commercial flights.

Civil Aviation Minister K Rammohan Naidu confirmed the approvals in a post on X, noting that while Shankh Air had been cleared earlier, Al Hind Air and FlyExpress received their NOCs this week. He reiterated the government’s long-standing objective to encourage more airlines as India’s aviation market expands.

The minister also pointed to regional connectivity initiatives such as UDAN, under which carriers including Star Air, IndiaOne Air and Fly91 have connected smaller cities that previously lacked air links. Officials say there remains significant scope to deepen regional operations.

According to the Directorate General of Civil Aviation, scheduled domestic airlines currently operating include IndiGo, Air India, Air India Express, Alliance Air, Akasa Air, SpiceJet, Star Air, Fly91 and IndiaOne Air. Past exits by Jet Airways and Go First underscore the financial risks inherent in aviation, even as demand continues to rise.