India Approves Three New Airlines to Break Duopoly After IndiGo’s Massive Flight Meltdown

The Union Ministry of Civil Aviation has granted No Objection Certificates (NOCs) to three new carriers: Shankh Air, Al Hind Air, and FlyExpress. This regulatory fast-tracking directly follows a massive operational crisis at IndiGo earlier in December 2025. The government aims to break the overwhelming market duopoly held by IndiGo and the Air India Group.

The Crisis That Triggered Change

India’s aviation market is one of the world’s fastest-growing. However, it is also highly concentrated. Industry data from August 2025 showed IndiGo held over 64% of the domestic market. The Air India Group controlled approximately 27%, creating a duopoly of over 90%.

This market vulnerability was exposed by the IndiGo operational crisis in early December 2025. The airline cancelled over 5,000 flights in one week. On December 5 alone, approximately 1,600 flights were grounded. This left thousands of passengers stranded nationwide.

The crisis was primarily caused by a pilot shortage. This shortage clashed with the new Flight Duty Time Limitation (FDTL) regulations. The Directorate General of Civil Aviation (DGCA) rules mandate increased rest hours for pilots. They also limit night landings for crew to two per week. IndiGo’s aggressive, high-utilisation business model was deemed unsustainable under the new safety norms. The DGCA even ordered the airline to cut flights until March 2026. The government views new competition as a national necessity. This is to prevent future systemic paralysis.

New Airlines Approved for Indian Skies

Civil Aviation Minister Ram Mohan Naidu confirmed the new NOCs. He stated the ministry’s goal is to encourage more airlines. The three new airlines bring distinct regional strategies.

• Shankh Air: This carrier is based in Uttar Pradesh. It plans a 2026 launch from the upcoming Noida International Airport. Shankh Air will operate as a full-service carrier. It will connect major hubs with cities like Lucknow and Varanasi.
• Al Hind Air: Promoted by the Kerala-based Alhind Group. It will debut as a regional commuter. The airline plans to use ATR 72-600 aircraft. Its operations will be centered in Kochi.
• FlyExpress: Based in Hyderabad, this startup will focus on underserved Tier-2 and Tier-3 routes.

Al Hind Air and FlyExpress are expected to begin regional operations next year.

Benefits for Passengers and Regional Connectivity

The entry of these new Indian airlines approved by the government promises several benefits. Increased competition typically leads to more affordable fares on regional routes. The new carriers will also strengthen regional connectivity. This aligns with the government’s UDAN scheme. By focusing on Tier-II and Tier-III cities, they reduce the need for connecting flights through major metros.

Crucially, diversifying the market provides a buffer against systemic failures. A crisis at one major airline will no longer paralyze the entire nation’s travel plans. This move is a direct attempt to ensure the public is never left stranded again. The DGCA's action, combined with the new NOCs, signals a shift toward more resilient aviation infrastructure, as reported by aviation news outlets like those found on flying.flights.

For the new entrants to succeed, they must overcome the historical challenges of the Indian market. Experts note that smaller operators must not be priced out by the giants. Strong financial backing and a clear strategy are essential for long-term stability. The government’s active encouragement of these new players is a critical step in fostering a more competitive and human-centric service standard in Indian skies.