The Ministry of Civil Aviation has granted no-objection certificates (NOCs) to two upcoming airlines, Al Hind Air and FlyExpress, signalling a push to broaden competition in India’s aviation sector following IndiGo’s operational crisis earlier this month.
The move comes amid renewed scrutiny of the industry’s duopolistic structure, which was highlighted after IndiGo, India’s largest airline, faced widespread disruptions in early December. The government’s decision is being seen as an effort to encourage more operators, expand consumer choice, and prevent excessive market concentration.
Union Civil Aviation Minister Ram Mohan Naidu confirmed the approvals in a post on X, noting that the ministry has been actively engaging with aspiring airline promoters. “Over the last week, I met teams from new airlines seeking to take wing in Indian skies—Shankh Air, Al Hind Air, and FlyExpress. While Shankh Air has already received its NOC, Al Hind Air and FlyExpress were granted theirs this week,” the minister said.
He added that encouraging new airline entrants remains a priority, particularly as India ranks among the world’s fastest-growing aviation markets. The minister highlighted the role of government initiatives such as the UDAN scheme in enabling smaller carriers—including Star Air, India One Air, and Fly91—to strengthen regional connectivity, noting that there remains significant scope for further growth.
However, industry stakeholders have cautioned that market entry alone will not address deeper structural challenges. Airlines continue to urge the government to examine India’s high operating costs, among the highest globally, with elevated aviation turbine fuel prices and taxation cited as major pain points.
“In the Indian aviation ecosystem, almost all stakeholders—except airlines—make money. That’s why we have seen repeated airline failures over the past three decades,” an industry veteran told The Times of India. “Launching a new airline is possible, but sustaining operations is far more difficult due to high costs, heavy taxes, limited management bandwidth, and thin capital buffers.”
While airline failures are not unique to India, industry executives warn that the domestic environment is particularly unforgiving. “Flying is no longer a luxury. If air travel is to remain accessible to the common citizen, cost and tax rationalisation is no longer optional,” said a senior airline executive.
The renewed focus on competition follows IndiGo’s major operational meltdown in December 2025, when the airline cancelled nearly 4,500 flights over a 10-day period. The disruption peaked on December 5, with over 1,600 cancellations in a single day, leaving close to 11 lakh passengers stranded nationwide. The crisis was triggered by inadequate preparedness for new Flight Duty Time Limitation (FDTL) norms introduced by the Directorate General of Civil Aviation (DGCA) to curb pilot fatigue.
