Three New Airlines Cleared to Fly; Can They Challenge IndiGo's 65% Market Share?

The Indian government has moved to inject new competition into the nation's rapidly growing skies. The Ministry of Civil Aviation (MoCA) recently granted No-Objection Certificates (NOCs) to three new carriers: Shankh Air, Al Hind Air, and FlyExpress. This move is a direct response to concerns over market concentration in the domestic sector. IndiGo and the Air India Group currently control over 90% of the domestic Indian aviation market. IndiGo alone commands a market share exceeding 65%, according to recent industry data.

This regulatory push follows a major operational crisis at the dominant carrier in December 2025. Thousands of flights were cancelled, exposing the risks of a market duopoly. The disruptions were linked to the implementation of new DGCA rules on Flight Duty Time Limitation (FDTL).

The New Contenders: Diverse Business Models

Each new entrant is pursuing a distinct strategy to capture market share. They are aiming to fill specific gaps in the domestic air travel and logistics sectors.

Shankh Air: Targeting Predictable Fares

Shankh Air is positioning itself as a domestic airline for middle-income passengers. The carrier is promoted by Kanpur-based businessman Shravan Kumar Vishwakarma. Its strategy focuses on minimal dynamic pricing to offer stable, predictable fares. The airline intends to begin operations with Airbus A320 aircraft.

Lucknow is planned as its primary base. The initial network will connect cities across Uttar Pradesh to major hubs like Delhi, Mumbai, and Bengaluru. The new Jewar Airport is also being considered as a future strategic hub.

Al Hind Air: Regional Connectivity

Kerala-based Al Hind Air will operate as a regional commuter airline. The Al Hind Group, led by T Mohammed Haris and PV Valsaraj, promotes the venture. They have a strong background in the travel and tourism industry. The airline's strategy centers on using ATR 72-600 turboprop aircraft.

Kochi International Airport will serve as the main hub. The initial focus is on connecting Tier-2 and Tier-3 cities in Kerala and Southern India. This model is considered more cost-efficient for short-haul regional travel. The airline is also exploring future international services to Gulf destinations.

FlyExpress: Cargo-Only Operations

FlyExpress is the third entrant, but it will not carry passengers. This Hyderabad-based company plans to operate as a cargo-focused airline. Its services will target the e-commerce, medical logistics, and international parcel segments. The promoters are linked to an established global logistics network.

With Hyderabad as its operational base, the airline aims to run dedicated freighter services. This move will connect major logistics hubs in India and overseas. The goal is to gain tighter control over delivery timelines by reducing reliance on other carriers.

The Regulatory Road Ahead

All three airlines have secured the initial NOC from the MoCA. This is the first step in the regulatory process. They are now at various stages of obtaining the crucial DGCA Air Operator Certificate (AOC).

• The AOC is the final regulatory approval needed to begin commercial flights.
• The process involves proving financial strength, acquiring aircraft, hiring trained crew, and completing test flights.
• Shankh Air is reportedly aiming for a launch in 2026.

Industry Impact and Challenges

The entry of these airlines is a significant development for the Indian aviation sector. It signals the government's commitment to boosting competition and regional connectivity. The domestic market is projected to reach 300 million passengers by 2030, highlighting the need for increased capacity.

Key Impacts and Opportunities:

• Increased Consumer Choice: New carriers could moderate airfares and improve service reliability.
• Regional Growth: Al Hind Air and FlyExpress may leverage the government's UDAN regional connectivity scheme to serve underserved routes.
• Logistics Efficiency: FlyExpress addresses the rapidly expanding e-commerce and cargo market with dedicated air freight services.

Challenges Remain:

• AOC Process: Securing the AOC is a demanding process in the highly regulated industry.
• Aircraft Shortages: Global aircraft and engine supply chain issues could delay fleet induction.
• Financial Viability: The Indian market is notoriously challenging, with high fuel costs and taxes, which have led to the failure of several airlines in the past.