India’s aviation market is set to see fresh competition, with the government clearing two new airlines to move ahead with launch preparations. Al Hind Air and FlyExpress have received no-objection certificates (NOCs) from the civil aviation ministry, part of an effort to reduce the sector’s heavy reliance on a few dominant carriers after recent disruption at IndiGo.
The approvals come at a time when domestic air travel is growing rapidly, even as the number of active players remains limited. Another carrier, Uttar Pradesh-based Shankh Air, has already secured its NOC and is expected to begin commercial operations in 2026. Together, these new entrants are likely to gradually expand choice for passengers in a market currently controlled by a handful of large airlines.
Why the government wants more airlines
Despite rising demand, new airlines in India have historically struggled to survive due to high operating costs, mounting debt and multiple operational hurdles. India currently has just nine scheduled domestic airlines in service, a number that shrank further in October when regional carrier Fly Big halted scheduled operations. This thinning field has raised concerns about the lack of depth in the sector, even as passenger volumes climb year after year.
The market is dominated by IndiGo and the Air India Group, which includes Air India and Air India Express. Together, they command over 90% of domestic traffic, with IndiGo alone holding more than 65% share. Flight disruptions at IndiGo earlier this month inconvenienced travellers nationwide, underlining the risks of over-dependence on a single airline in a large, fast-growing aviation market.
Who are the new airlines?
Al Hind Air is being promoted by the Kerala-based alhind Group, which already operates in the travel and related services space. FlyExpress is another proposed carrier looking to enter the domestic segment at a time when demand for air travel remains robust but competitive intensity is relatively low.
Shankh Air, which already has its NOC, is targeting a 2026 launch. All three carriers must still complete multiple regulatory and operational processes, including safety and readiness checks, before they can start commercial flights.
Civil Aviation Minister K. Rammohan Naidu confirmed the clearances in a post on X on Tuesday, stating that the ministry had held discussions with representatives of Shankh Air, Al Hind Air and FlyExpress. While Shankh Air had been approved earlier, the NOCs for Al Hind Air and FlyExpress were issued this week.
The minister reiterated that encouraging more airlines has long been a government objective, in line with the rapid expansion of India’s aviation sector. He highlighted schemes such as UDAN, which aim to strengthen air connectivity to smaller towns and cities. Under UDAN, carriers like Star Air, India One Air and Fly91 have launched services on routes that previously had little or no air links, helping integrate smaller centres into the national aviation grid. The ministry maintains there is significant scope to scale up such regional operations.
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According to data from the Directorate General of Civil Aviation, India’s scheduled domestic airlines currently include IndiGo, Air India, Air India Express, Alliance Air, Akasa Air, SpiceJet, Star Air, Fly91 and IndiaOne Air.
At the same time, the shutdown of carriers such as Jet Airways and Go First after they failed to overcome financial stress serves as a reminder of how challenging and high-risk the airline business remains in India.