India civil aviation sector is set to witness stronger competition after the government issued No Objection Certificates (NOCs) to two new airlines—Al Hind Air and FlyExpress. In addition, Shankh Air, based in Uttar Pradesh and already holding an NOC, is expected to begin commercial operations in 2026. These developments are expected to reduce market concentration and the provide passengers with more choices.
Government Push to Expand India Civil Aviation Sector
The latest approvals highlight the government’s commitment to expanding the India civil aviation sector, one of the fastest-growing domestic aviation markets globally. At present, only nine scheduled domestic airlines are running in the country. This number dropped further in October after regional airline Fly Big suspended its scheduled services.
By clearing new carriers the government aims to encourage wider participation and reduce dependency on a handful of dominant airlines.
New Airline Enter a Highly Concentrated Market
Al Hind Air is backed by the Kerala-based Alhind Group, while FlyExpress joins several aspiring carriers planning entry into the India civil aviation sector. Meanwhile, Shankh Air, which has already received regulatory clearance, is preparing for a full-scale launch next year.
Industry experts say the need for new airlines has grown due to concerns over limited competition. IndiGo and the Air India Group together control over 90% of the domestic market with IndiGo alone holding more than 65% share.
Operational Disruptions Highlight Market Risks
Concerns about over-reliance on a single carrier intensified earlier this month when operational disruptions at IndiGo affected large parts of the network. The incident underlined the risks faced by the India civil aviation sector when market power is concentrated among a few players.
Minister Confirms NOC Approvals
Civil Aviation Minister K. Rammohan Naidu confirmed the approvals through a post on X. He stated that while Shankh Air had already received its clearance, Al Hind Air and FlyExpress were granted NOCs this week. The ministry has held discussions with all three airlines to support their entry into the market.
Over the last one week, pleased to have met teams from new airlines aspiring to take wings in Indian skies—Shankh Air, Al Hind Air and FlyExpress.
While Shankh Air has already got the NOC from Ministry, Al Hind Air and FlyExpress have received their NOCs in this week.
It has… pic.twitter.com/oLWXqBfSFU
— Ram Mohan Naidu Kinjarapu (@RamMNK) December 23, 2025
UDAN Scheme Supporting Regional Growth
The minister reiterated that promoting new airlines has always been a key policy goal especially with the rapid growth of the India civil aviation sector. He talked about schemes like UDAN, which help improve air travel to small cities and support small airlines. Under the UDAN scheme, airlines such as Star Air, IndiaOne Air, and Fly91 have started flights on routes where air services were limited. These flights connect small towns with big cities. The government believes that this area of aviation can grow a lot in the future.
Current Airlines and Past Challenges
According to the Directorate General of Civil Aviation (DGCA), India’s current scheduled airlines include IndiGo, Air India, Air India Express, Alliance Air, Akasa Air, SpiceJet, Star Air, Fly91, and IndiaOne Air.
But the India civil aviation sector also has problems. Airlines like Jet Airways and Go First closed in recent years due to lack of the money and working issues. This shows that running an airline is difficult and risky.
Also Read: Big Aviation Update: New Airline NOC in India Granted to Al Hind Air and FlyExpress