New Delhi: India may soon see more airlines take to the skies, but aviation experts say this may not translate into meaningful relief for flyers anytime
soon. The Ministry of Civil Aviation (MoCA) has recently granted no-objection certificates (NOCs) to two new airlines - Al Hind Air and FlyExpress - taking the total number of regional carriers in the pipeline to four. Two others, Air Kerala and Shankh Air, received their NOCs last year but are yet to begin operations as they still need Air Operator Certificates (AOCs) from the Directorate General of Civil Aviation (DGCA). The move to give NOCs to two new airlines is seen as government's attempt to expand the sector from a two-player dominant to multiplayers co-existing, allowing flyers more options. Civil Aviation Minister K Rammohan Naidu said it has been MoCA’s “endeavour” to encourage more airlines in India, which is among the world’s fastest-growing aviation markets. Also Read: 'Indi-Stop'? Inside The Crisis That Left Indigo Staff And Passengers Stranded In Silence The move comes weeks after IndiGo, India’s largest airline, faced a major operational disruption, reigniting concerns over the country’s airline duopoly. IndiGo and the Air India group together control more than 90 per cent of the domestic market.
Why It May Not Challenge the Duopoly in the Aviation Sector
While the entry of new airlines may appear encouraging, aviation experts caution that smaller regional carriers are unlikely to pose a serious challenge to dominant players or significantly improve fares and connectivity for most passengers.
Al Hind Air, part of the Kerala-based Al Hind Group, plans to operate a regional commuter airline using ATR-72 turboprop aircraft. Air Kerala, meanwhile, aims to position itself as an ultra-low-cost carrier connecting tier-two and tier-three cities using turboprops. However, despite receiving its no-objection certificate last year, Air Kerala has struggled to induct aircraft — a key requirement for securing an Air Operator Certificate — according to an Indian Express report citing industry sources.
Details of FlyExpress’s business plans are yet to be made public. Shankh Air, promoted by Uttar Pradesh-based entrepreneur Sharvan Kumar Vishwakarma, plans to operate regional flights within and outside the state from the upcoming Noida International Airport and hopes to begin services in the coming months, the report added.
Beyond individual airline plans, structural challenges continue to weigh on the regional aviation segment. Demand at smaller airports tends to be limited and highly seasonal, making routes commercially inconsistent. Despite strong overall passenger growth, most air traffic remains concentrated at major metro airports.
Regional airlines also face difficulty accessing financing, as lenders view the segment as high risk, especially for carriers without the backing of larger airline groups. In addition, short regional routes often compete with cheaper and more convenient alternatives such as trains and road transport. Opportunities to earn additional revenue through ancillary streams like belly cargo are also limited, further constraining profitability.
These factors together make it difficult for new regional airlines to scale up or meaningfully disrupt the existing duopoly in India’s aviation sector.
Industry insiders warn that India remains a tough market for regional airlines. Apart from a few players such as Star Air, Fly91 and government-owned Alliance Air, most regional carriers have failed to sustain operations. Over the years, airlines including Paramount Airways, Air Pegasus, TruJet, Zoom Air, Air Carnival, Air Costa, Air Mantra and Air Odisha have shut down. More recently, Fly Big suspended flights in October.
Why Airlines Struggle To Fly In India
Experts point to high operating costs, thin profit margins, dollar-linked expenses, high debt and strong price sensitivity among Indian passengers as major challenges. Some policymakers and industry participants remain hopeful that growing incomes and rising air travel demand could improve the prospects for regional airlines over time. However, analysts say success will depend on lean operations, identifying underserved routes and, most importantly, strong financial backing.
Until then, the arrival of four new airlines may do little to change the experience of the average Indian flyer.
