India Approves Al Hind Air, FlyExpress, Shankh Air to Challenge Aviation Duopoly

Indian civil aviation market is all set for fresh competition, as two new airlines, AI Hind Air and FlyExpress, received no objection certificates from the Union Civil Aviation Ministry. In addition, UP-based Shankh Air already holds an NOC, and is expected to begin operations in 2026. 

In a post on X (formerly Twitter), Civil Aviation Minister K Rammohan Naidu said, “...pleased to have met teams from new airlines aspiring to take wings in Indian skies - Shankh Air, AI Hind Air and FlyExpress. While Shankh Air has already got the NOC from Ministry…”

“It has been endeavour of the ministry to encourage more airlines in Indian Aviation which is amongst the fastest growing aviation markets in the world owing to the policies of the government of PM Narendra Modi. Schemes like UDAN, has enabled small carriers Star Air, India One Air, Fly91,” he added. 

The clearances show the government’s renewed push to broaden competitions in one of the fastest-expanding aviation markets globally. Currently, only nine scheduled domestic airlines are in operations, a number that dipped further in October when regional player Fly Big halted its scheduled services. 

Al Hind Air is backed by the Kerala-based alhind Group, while FlyExpress joins a growing queue of hopeful entrants looking to break into a market still dominated by a handful of large players with significant scale and pricing leverage.

Shankh Air, which has already secured regulatory approval, is also expected to begin commercial flights next year.

The urgency to induct new airlines has intensified amid rising unease over the sector’s effective duopoly. IndiGo and the Air India Group, including Air India and Air India Express, together command over 90%of domestic air traffic, with IndiGo alone accounting for more than 65% of the market.

IndiGo Fiasco

On December 5, IndiGo airlines, which carries two out of every three domestic air travellers in India, cancelled over half of its 2,200 or so daily flights. The chaos it triggered was unprecedented: large piles of baggage inside airports, angry passengers shouting at ticket counters and tearful ground staff struggling to cope.

IndiGo blamed the cancellations on the alignment of several precipitating factors, especially the Directorate General of Civil Aviation (DGCA)’s new Flight Duty Time Limitations (FDTL) norms that restricted pilot duty hours.

The situation in India’s airports became so unstable that the Ministry of Civil Aviation was forced to roll back the FDTL norms and delay their implementation till February 2026. The events also triggered an investigation by the Competition Commission of India.

Meanwhile, the Directorate General of Civil Aviation (DGCA) has extended the deadline for a four-member committee investigating recent flight disruptions at IndiGo. The panel, led by Joint Director General Sanjay K. Bramhane, was earlier asked to submit its report by December 20. However, it will now present its findings today, December 26.

The committee requested an extension as it needed more time to examine a large volume of data submitted by IndiGo. The airline has provided extensive operational information, which the panel said requires detailed analysis before final conclusions can be drawn.

The probe is focusing on several aspects, including flight planning, crew management, and the role of regulatory oversight. The aim is to determine whether shortcomings in these areas led to the large-scale disruptions.

The operational meltdown has been linked to the implementation of new Flight Duty Time Limitation (FDTL) rules, which came into force on November 1. These rules increase mandatory rest periods for pilots, limit night-time flying duties, and require at least 48 hours of rest each week.

IndiGo reportedly did not fully adjust its crew scheduling systems to comply with the stricter rules, resulting in a shortage of available pilots.