India Approves Three New Airlines to Challenge IndiGo-Air India Duopoly

India's civil aviation sector is set for a major shake-up. Two new carriers, Al Hind Air and FlyExpress, received initial government clearance this week.

Another aspiring carrier, Shankh Air, already holds its clearance. This push for new Indian airlines approved signals a government effort to widen market participation. The goal is to challenge the powerful India aviation market duopoly.

Civil Aviation Minister K Rammohan Naidu confirmed the approvals. He posted the news on X (Twitter) on Tuesday. The minister met with teams from all three carriers.

The Duopoly Challenge

India's domestic air travel is one of the world's fastest-growing. Yet, the market is heavily concentrated. The India domestic market share is dominated by two major players.

IndiGo and the Air India Group control over 90% of the domestic market. IndiGo alone holds more than 65% of the market share. Specifically, IndiGo had a 64.2% share as of August 2025. The Air India Group held 27.3% during the same period.

This concentration creates significant systemic risk. Concerns sharpened after recent major operational disruptions at IndiGo. These events highlighted the airline operational disruptions risk from heavy dependence on one carrier.

New Entrants and Operational Plans

The new carriers aim to inject fresh competition. They must first complete all regulatory and operational steps. This includes securing an Air Operator Certificate (AOC) from the DGCA.

• Al Hind Air: This carrier is promoted by the Kerala-based alhind Group. It plans to focus on South India and regional connectivity UDAN scheme routes. The initial fleet will use ATR 72-600 turboprop aircraft.
• FlyExpress: This is another aspiring carrier seeking to enter the domestic space.
• Shankh Air: The Uttar Pradesh-based carrier expects to begin commercial operations in Q1 2026. Shankh Aviation aims to scale its fleet to 20–25 aircraft.

These New Indian airlines approved will expand the list of scheduled domestic carriers. Currently, only nine such airlines are fully operational.

Regulatory Context and Future Outlook

The government has a consistent policy objective to encourage more airlines. This is vital given the rapid growth of Indian aviation. Schemes like UDAN (Ude Desh ka Aam Naagrik) support smaller carriers. UDAN aims to improve air links to smaller cities and towns.

Existing regional players like Star Air, IndiaOne Air, and Fly91 have benefited from this focus. The new NOCs signal the ministry's commitment to breaking the duopoly.

The opportunity for these new airlines is significant. They can capture demand in underserved markets. The challenge remains high, however. Past carriers like Jet Airways and Go First failed due to debt and operational issues. This history underscores the sector’s inherent volatility. The successful launch of Al Hind Air, FlyExpress, and Shankh Air will be closely watched by the industry. For more commercial aviation news and updates on the Indian market, visit flying.flights.