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India clears 2 new airlines to boost competition

Al Hind Air and FlyExpress get nod to boost competition and cut aviation duopoly

The Indian government has given initial approval to two new airlines, Al Hind Air and FlyExpress, allowing them to move closer to starting flight operations. The decision is aimed at increasing competition in the domestic aviation sector, which is currently dominated by a few large players.

The approvals were granted by the Ministry of Civil Aviation through the issuance of No Objection Certificates (NOCs). Civil Aviation Minister K. Rammohan Naidu said the move reflects the government’s effort to strengthen the aviation sector and offer passengers more choices.

The decision comes shortly after a major disruption at IndiGo earlier this month, when the airline cancelled thousands of flights due to staffing and operational issues. The incident affected a large number of passengers and highlighted the risks of depending heavily on one airline. At present, IndiGo controls about 65 per cent of India’s domestic air travel market, while the Air India Group accounts for around 27 per cent. Smaller airlines share the remaining portion.

Al Hind Air is promoted by the Kerala-based alhind Group. The airline plans to start operations with smaller aircraft and focus on regional routes, especially in southern India. Its aim is to improve connectivity between smaller cities and towns. The airline will now work on completing regulatory requirements, including getting an Air Operator Certificate.

FlyExpress, the second airline to receive approval, has indicated that it plans to begin operations soon. While detailed plans about its routes and fleet have not yet been shared publicly, the airline is expected to serve domestic passengers and add capacity to the market.

In addition, another airline, Shankh Air, has already received its NOC earlier and is expected to start flying in 2026.

The government believes that the entry of new airlines will improve services, reduce the impact of disruptions, and encourage competitive pricing. It also supports broader goals such as expanding regional air connectivity under existing aviation policies.

With passenger demand continuing to grow, the addition of new airlines is expected to make India’s aviation sector more balanced, competitive, and resilient.

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