Wings Of Change: Govt Clears Two New Airlines After IndiGo Blues Expose Duopoly Dangers

In what observers see as a strategic move to dismantle the growing duopoly in the Indian skies, the Union Ministry of Civil Aviation has granted No Objection Certificates (NOCs) to two new carriers, Al Hind Air and FlyExpress. Union Civil Aviation Minister K Rammohan Naidu confirmed the development on Wednesday, following a series of high-level meetings with the leadership teams of these aspiring airlines. This regulatory clearance marks a critical step toward their commercial debut, which is expected to take place in the coming year.

The timing of these approvals is particularly significant. Earlier this month, a massive operational collapse at IndiGo—which currently holds a market share exceeding 65%—resulted in the cancellation of thousands

of flights and a sharp spike in airfares. This disruption highlighted the systemic risks of a market where just two entities, IndiGo and the Air India Group, control over 90% of domestic traffic. By greenlighting new entrants, the government is signalling its commitment to enhancing competition and providing more affordable options for the Indian traveller.

Al Hind Air, backed by the Kerala-based Alhind Group, is positioning itself as a regional commuter airline. The carrier plans to operate out of its primary hub at Kochi International Airport (CIAL) with an initial fleet of three ATR 72-600 aircraft. Its strategy focuses on connecting the interior regions of Kerala with neighbouring hubs like Bengaluru and Chennai. Meanwhile, FlyExpress, a Hyderabad-based venture with roots in courier and cargo operations, is preparing to enter the passenger segment, further diversifying the competitive landscape.

In addition to these two, Uttar Pradesh-based Shankh Air is slated to begin operations in 2026. Having already secured its NoC earlier, Shankh Air plans to use Boeing 737-800 aircraft to connect UP cities, such as Lucknow, Varanasi, and Gorakhpur, with major metros, including Delhi and Mumbai. The entry of these three carriers comes at a time when the number of operational domestic airlines has shrunk to just nine, following the recent suspension of flights by regional carrier Fly Big. As the ministry pushes for greater regional connectivity under schemes like UDAN, the arrival of these new players is seen as a vital safeguard against market concentration and a boost for India’s position as one of the world’s fastest-growing aviation markets.