India Approves Three New Airlines to Boost Competition After IndiGo Crisis

December 26, 2025 at 10:44 AM•3 min read

India's Civil Aviation Minister approved three new airlines—Shankh Air, Al Hind Air, and FlyExpress—to increase domestic market competition following widespread IndiGo flight

Key Points

1Three new airlines—Shankh Air, Al Hind Air, and FlyExpress—received NOCs in December 2025 to increase competition.
2The approvals follow an operational crisis at IndiGo, which saw over 5,000 flights cancelled due to non-compliance with new FDTL rules.
3IndiGo and the Air India Group control over 90% of India's domestic market, which grew to 161.3 million passengers in 2024.
4New entrants like Al Hind Air plan to focus on regional routes using aircraft like the ATR 72-600.

The Indian government has approved three new airlines. Civil Aviation Minister Kinjarapu Ram Mohan Naidu confirmed the news. This move aims to increase domestic aviation market competition. The three carriers are Shankh Air, Al Hind Air, and FlyExpress. All three have received No Objection Certificates (NOCs) from the Ministry of Civil Aviation (MoCA). This development follows a major operational crisis at the country's largest carrier.

Context of Market Disruption

The approvals come weeks after severe IndiGo flight disruptions. Thousands of passengers were stranded across India in early December. The chaos was caused by the full implementation of new flight duty time limitations (FDTL). The Directorate General of Civil Aviation (DGCA) rules took effect November 1, 2025. IndiGo reportedly failed to manage crew rostering under the stricter rules. This led to over 5,000 flight cancellations in the peak travel season. Air travel peaks in December due to holidays and the wedding season. Minister Naidu called the disruption a result of "internal lapses". The DGCA has launched a high-level inquiry into the matter.

Boosting Domestic Aviation Market Competition

India's domestic air traffic reached 161.3 million passengers in 2024. This represents a 6.12% annual growth. India is now the world's third-largest civil aviation market. However, the market is highly concentrated. IndiGo holds a dominant market share of over 64%. The Air India Group and IndiGo together control over 90% of domestic flights. This duopoly risk was highlighted by the recent operational failures. The government hopes the new airlines start operations to reduce this reliance.

Details on New Entrants

The three new carriers are in various stages of pre-operational readiness. Shankh Air Al Hind Air FlyExpress will focus on different segments. Shankh Air, based in Uttar Pradesh, plans to be a full-service carrier. It intends to operate from the new Noida International Airport. Al Hind Air is promoted by the Kerala-based Alhind Group. It plans to debut as a regional commuter carrier. Al Hind Air will use ATR 72-600 model aircraft. FlyExpress is also gearing up for scheduled operations.

These new entrants align with the government's UDAN scheme. The scheme aims to boost regional connectivity across India. Expanding the fleet size is crucial for this growth. IATA data shows India's domestic traffic share has risen to 78.2%. Aircraft manufacturers like Airbus are seeing massive order books from Indian carriers. This points to sustained momentum in the sector. For more updates on global aviation, visit our commercial aviation news section.