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India’s civil aviation regulator has granted approvals for three new airlines to enter the domestic market, a move seen as a strategic response to recent operational disruptions at the country’s largest carrier and longstanding concerns about market concentration. According to Indian media reports, Shankh Air, Al Hind Air and FlyExpress have received no-objection certificates (NOCs) from the Ministry of Civil Aviation, setting the stage for expanded competition and capacity in one of the world’s fastest-growing aviation markets.
The approvals, confirmed by Civil Aviation Minister K. Ram Mohan Naidu on social media, come in the aftermath of widespread flight cancellations and scheduling turmoil at IndiGo earlier this month that left tens of thousands of passengers stranded. That episode, widely covered in Indian media, exposed structural vulnerabilities in a market where a few carriers dominate capacity and routes.
Read: IndiGo shares plunge 7.5% as staffing crisis triggers mass cancellations
The three new entrants vary in profile and planned focus. Uttar Pradesh-based Shankh Air, which had already secured its NOC, is targeting an early 2026 launch with regional operations centered on underserved northern routes. Al Hind Air, backed by the Kerala-based Alhind Group, intends to begin services from Kochi using ATR turboprops to strengthen intra-regional connectivity. FlyExpress is positioning itself as a domestic low-fare carrier with ambitions to serve both passenger and freight segments from Telangana. All three airlines will still need to complete regulatory and operational milestones before commercial services begin.
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.
While Shankh Air has already got the NOC from Ministry, Al Hind Air and FlyExpress have received their NOCs in this week.
It has… pic.twitter.com/oLWXqBfSFU
— Ram Mohan Naidu Kinjarapu (@RamMNK) December 23, 2025
For industry stakeholders, the government’s intervention marks a clear shift toward diversifying India’s airline ecosystem and reducing reliance on legacy players. Currently, the domestic market is heavily concentrated, with IndiGo alone holding more than 60 per cent of capacity and the combined IndiGo/Air India Group duopoly accounting for over 90 per cent of traffic. That dominance has drawn scrutiny from regulators and corporate travel planners alike.
Market analysts say that bringing in new carriers could help ease price volatility and capacity shortages that emerged during the IndiGo disruption, while also stimulating investment in regional airports and feeder routes. For Gulf businesses with aviation ties, whether through aircraft leasing, hospitality, logistics or corporate travel procurement, the emergence of new Indian carriers presents both risk and opportunity. Increased competition could drive demand for ancillary services, ground handling partnerships and expanded interline agreements with Gulf-based airlines. Additionally, domestic Indian growth often feeds outbound international travel, with the Gulf region a key destination for Indian tourists, business travellers and migrant workers.
The ministry has framed its latest approvals as part of a broader policy to expand airline participation under initiatives such as UDAN, India’s regional connectivity scheme. Government and industry observers will be watching closely in 2026 as these carriers ramp up operations and test their ability to compete sustainably in a complex and capital-intensive sector.
