New Airlines Set to Enter Indian Skies as Aviation Ministry Pushes Competition

Updated on December 25, 2025

India’s civil aviation sector is set for a fresh phase of expansion with two new airlines — Al Hind Air and FlyExpress — receiving No Objection Certificates (NOCs) from the Ministry of Civil Aviation. In addition, Uttar Pradesh–based Shankh Air, which has already secured its NOC, is expected to commence flight operations in 2026.

Al Hind Air is being promoted by the Kerala-based Alhind Group, while FlyExpress marks another addition to the growing list of aspiring carriers looking to tap into India’s booming domestic air travel demand.

Government Encourages More Airline Operators

The Ministry of Civil Aviation has been actively encouraging the entry of new airlines to strengthen competition in one of the world’s fastest-growing domestic aviation markets. At present, India has nine operational scheduled domestic airlines, although regional carrier Fly Big suspended its scheduled services in October.

Civil Aviation Minister K Rammohan Naidu confirmed the latest developments in a post on X, stating that the ministry has recently interacted with teams from Shankh Air, Al Hind Air, and FlyExpress. He noted that while Shankh Air had already received its clearance earlier, Al Hind Air and FlyExpress were granted their NOCs this week.

Addressing Market Concentration Concerns

The push for new airline entrants comes at a time when concerns over a growing duopoly in India’s domestic aviation sector have intensified. IndiGo and the Air India Group—which includes Air India and Air India Express—together account for over 90% of the domestic market share. IndiGo alone controls more than 65% of the market.

Recent large-scale operational disruptions at IndiGo have further highlighted the risks of excessive market concentration, renewing calls for more competition and capacity diversification within the sector.

Regional Connectivity Driving Growth

The minister also highlighted the role of government-backed initiatives such as UDAN in strengthening regional air connectivity. The scheme has enabled smaller carriers like Star Air, India One Air, and Fly91 to operate on underserved routes, playing a key role in expanding air travel access across tier-2 and tier-3 cities.

According to the ministry, there remains significant headroom for growth in both regional and national aviation segments, with new airlines expected to improve connectivity, pricing competition, and passenger choice over the coming years.