March 13, 2026 03:11 am (IST)
Follow us:
facebook-white sharing button
twitter-white sharing button
instagram-white sharing button
youtube-white sharing button
America’s flip-flop on Russian oil: How Washington sends conflicting signals to India | Big diplomatic win! Iran allows Indian oil tankers through the Strait of Hormuz | ‘It was over in the first hour’: Trump declares victory in Iran war, says ‘nothing left to target’ | Indian-origin shopkeepers face targeted attacks in Wembley; Somali men suspected | Iran pulls out of 2026 FIFA World Cup amid war with US-Israel | Supreme Court allows first-ever passive euthanasia for 32-year-old man in coma for 13 years | As Iran-US war disrupts global gas supply, India issues guidelines to manage shortages | LPG crisis hits metros: Commercial cylinder shortage triggers panic as govt prioritises domestic supply | Iran war disrupts LPG supplies, restaurants in major Indian cities edge towards shutdown | ‘How dare you question judicial officers?’: SC raps Bengal SIR pleas, orders appellate tribunals for voter list appeals
Aviation
Representational image from Pexels/Pixabay

India clears new airlines to break aviation duopoly after IndiGo crisis exposes market risks

| @indiablooms | Dec 24, 2025, at 05:42 pm

New Delhi/IBNS: India has taken a decisive step to widen competition in its fast-growing aviation sector by approving new airline entrants, aiming to dilute the overwhelming dominance of a few major carriers.

The move comes in the wake of recent operational disruptions at IndiGo, which reignited concerns over the risks of an overly concentrated market.

New airlines get regulatory green light

The Union Ministry of Civil Aviation has granted no objection certificates (NOCs) to two new airline applicants — Al Hind Air and FlyExpress — paving the way for their entry into India’s domestic aviation market.

A third carrier, Uttar Pradesh-based Shankh Air, which already holds an NOC, is expected to commence operations in 2026.

Civil Aviation Minister K Rammohan Naidu confirmed the approvals in a post on X, stating that the ministry recently held meetings with teams from Shankh Air, Al Hind Air and FlyExpress.

While Shankh Air had secured clearance earlier, Al Hind Air and FlyExpress received their approvals this week.

Govt signals push for wider participation

The approvals underscore the government’s renewed intent to expand participation in one of the world’s fastest-growing aviation markets.

India currently has only nine scheduled domestic airlines in operation, a number that shrank further in October after regional carrier Fly Big suspended scheduled services.

Al Hind Air is being promoted by the Kerala-based alhind Group, while FlyExpress joins a growing list of aspiring airlines attempting to enter a market where pricing power and scale remain heavily concentrated.

Duopoly concerns intensify after IndiGo disruptions

The push for new airlines has gained urgency amid mounting concern over India’s aviation duopoly.

IndiGo and the Air India Group — comprising Air India and Air India Express — together command more than 90 per cent of the domestic market.

IndiGo alone controls over 65 percent.

These worries sharpened earlier this month when operational disruptions at IndiGo triggered widespread delays and cancellations, exposing the systemic risks of heavy reliance on a single dominant carrier in a rapidly expanding aviation ecosystem.

Role of UDAN and regional connectivity

Minister Naidu reiterated that encouraging more airlines has been a consistent policy objective, especially given the pace of growth in domestic air travel.

He highlighted the role of the government’s UDAN scheme, which focuses on boosting regional connectivity and has helped smaller carriers establish a presence.

Under UDAN, airlines such as Star Air, IndiaOne Air and Fly91 have expanded operations on underserved routes, linking smaller cities to the national aviation network.

The ministry believes there is still significant untapped potential in this segment.

Current landscape and lessons from past failures

According to the Directorate General of Civil Aviation, India’s scheduled carriers currently include IndiGo, Air India, Air India Express, Alliance Air, Akasa Air, SpiceJet, Star Air, Fly91 and IndiaOne Air.

However, the sector’s history also serves as a cautionary tale.

In recent years, airlines such as Jet Airways and Go First shut down after succumbing to mounting debt and operational pressures, highlighting the volatility and high-risk nature of the aviation business.

As new players prepare for takeoff, the success of India’s strategy to break the aviation duopoly will depend on whether fresh entrants can survive in a fiercely competitive and capital-intensive market.

Support Our Journalism

We cannot do without you.. your contribution supports unbiased journalism

IBNS is not driven by any ism- not wokeism, not racism, not skewed secularism, not hyper right-wing or left liberal ideals, nor by any hardline religious beliefs or hyper nationalism. We want to serve you good old objective news, as they are. We do not judge or preach. We let people decide for themselves. We only try to present factual and well-sourced news.

Support objective journalism for a small contribution.
Related Videos
RBI announces repo rate cut Jun 06, 2025, at 10:51 am
FM Nirmala Sitharaman presents Budget 2025 Feb 01, 2025, at 03:45 pm
Nirmala Sitharaman on Budget 2024 Jul 23, 2024, at 09:30 pm