Two New Airlines Get Government Nod, Set to Shake Up India’s Aviation Market

Two New Airlines Get Go-Ahead in India

India’s Ministry of Civil Aviation has recently granted No Objection Certificates (NOCs) to two new airlines—Al Hind Air and FlyExpress—allowing them to begin the process toward launching commercial flight operations. This decision comes as part of a push to boost competition and choice in the domestic aviation market, which has long been dominated by a few major carriers. 

Why the Move Now?

The approvals come shortly after widespread disruptions in the operations of IndiGo, India’s largest airline, which canceled thousands of flights in December 2025 due to staffing and scheduling issues. The situation highlighted the risks of heavy dependence on one airline and renewed calls for a more competitive and resilient aviation sector.

Who Are the New Airlines?

• Al Hind Air: A Kerala-based low-cost regional carrier planning to operate short-haul flights, especially from southern India, using ATR turboprop aircraft. 

• FlyExpress: A new low-cost carrier backed by a Hyderabad logistics company, preparing for launch with plans to serve both passenger and freight markets. 

Both airlines have received initial clearance but must still complete regulatory steps—including securing Air Operator Certificates (AOCs)—before they begin commercial flights. 

Bigger Picture: More Competition on the Horizon

In addition to these two, another airline, Shankh Air, has already secured its NOC and is expected to start operations in early 2026. This means three new carriers could eventually enter the domestic market, potentially easing pressure on consumers and offering more flight options across cities.

The government’s move aims to break the dominance of the current major players—IndiGo (which holds around two-thirds of the domestic market) and the Air India Group—and lower the cost pressures on passengers. 

Challenges Ahead

Industry experts caution that new airlines often face significant hurdles before actual flight operations begin, such as acquiring aircraft, meeting safety requirements, and establishing operational infrastructure. As a result, passengers may not see major changes in airline choices immediately.