New Delhi: In a move aimed at fostering competition, the Civil Aviation Ministry has granted initial approval to two new airlines. The decision follows recent operational disruptions at the country’s largest carrier, IndiGo, which highlighted concerns over market concentration.
Minister of Civil Aviation, Ram Mohan Naidu, announced the approvals in a post on social media platform X. “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,” he stated. “While Shankh Air has already got the NOC from the Ministry, Al Hind Air and FlyExpress have received their NOCs this week.” He added that encouraging new entrants remains a government priority.
The NOCs were granted to regional carrier Al Hind Air and FlyExpress. This preliminary clearance allows them to begin the process of setting up operations, but they must still secure a comprehensive ‘air operator certificate’ from the Directorate General of Civil Aviation (DGCA) before commencing commercial flights.
The approvals come weeks after IndiGo cancelled thousands of flights due to issues with crew scheduling, stranding passengers nationwide and sparking debate about the risks of a highly consolidated market. IndiGo commands approximately 65% of the domestic market share, with the Tata-owned Air India Group holding around 27%. Together, the two groups control nearly 90% of passenger traffic.
Al Hind Air is part of the Kerala-based Alhind Group and plans to start operations in southern India with ATR turboprop aircraft. FlyExpress is backed by a Hyderabad-based logistics company. Another recently approved carrier, Shankh Air, intends to focus on regional and metro routes, including cities in Uttar Pradesh.
The government has emphasized policy initiatives like the UDAN scheme to enhance connectivity and support smaller carriers. Since 2020, India has granted permits to six new air operators. The current scheduled carriers in India include IndiGo, Air India, Air India Express, Akasa Air, SpiceJet, Alliance Air, Star Air, Fly91, and IndiaOne Air.