India's aviation sector is poised for a significant shake-up as three new airlines have received the green light to begin operations, a move spurred in part by recent disruptions experienced by IndiGo. Al Hind Air, FlyExpress, and Shankh Air are set to enter the market, aiming to increase competition and provide more choices for Indian flyers.
The Ministry of Civil Aviation has granted No Objection Certificates (NOCs) to Al Hind Air and FlyExpress, while Shankh Air had already secured its clearance. Civil Aviation Minister K Rammohan Naidu confirmed the approvals, emphasizing the government's commitment to encouraging new entrants in the rapidly expanding Indian aviation market. The approvals come after the ministry met with representatives from the three airlines to discuss their vision and operational plans.
The push for new airlines gained urgency following major operational disruptions at IndiGo earlier this month. Thousands of flights were cancelled, impacting nearly half a million passengers, which highlighted the risks of heavy dependence on a single carrier in a fast-growing market. The disruptions, triggered by the implementation of new duty-time rules that tightened rest hours and night-flying limits for pilots, exposed crew shortages and operational vulnerabilities within IndiGo. This incident drew attention to the need for a more competitive and resilient aviation sector.
Al Hind Air is promoted by the Kerala-based Alhind Group, which already has a presence in travel and related services. FlyExpress is a Hyderabad-based enterprise traditionally focused on courier and cargo operations. Shankh Air, based in Uttar Pradesh, intends to connect major cities within the state, including Lucknow, Varanasi, Agra, and Gorakhpur, with affordable air connectivity. The airline aims to build a fleet of 20-25 aircraft within the next two to three years. Shankh Air plans to launch flight services in the first quarter of 2026.
India is the world's third-largest domestic aviation market, with domestic air traffic reaching 13.87 million passengers in June 2025, a 5.1% year-on-year increase. The market is dominated by low-cost carriers (LCCs), which hold 65% of the total capacity. IndiGo holds the largest market share at 48%, followed by Air India at 16%. Despite the growth potential, the aviation sector faces challenges such as high operating costs, fuel taxation, and aircraft acquisition bottlenecks. Rising aviation turbine fuel (ATF) prices and supply chain delays have also contributed to the industry's challenges.
The government is committed to expanding regional connectivity through schemes like UDAN (Ude Desh Ka Aam Nagrik), which aims to connect smaller cities to the national aviation network. By 2025, 625 UDAN routes are operational, serving 90 airports, two water aerodromes, and 15 heliports across India.
While the entry of new airlines is expected to intensify competition and potentially lead to more affordable fares, experts caution that long-term viability hinges on tackling structural challenges. The government's move to issue NOCs reflects a broader strategy to build resilience in India's air transport sector by reducing over-dependence on a small number of carriers and enhancing choices for passengers.
