The Centre has granted No Objection Certificates (NOCs) to two new airline applicants—Al Hind Air and FlyExpress—as part of efforts to enhance competition in India’s highly concentrated aviation sector. The approvals come amid growing concerns over market dominance and recent operational disruptions at IndiGo.
Civil Aviation Minister Ram Mohan Naidu said on Tuesday night that the Ministry of Civil Aviation has engaged with teams from three aspiring airlines over the past week. While Shankh Air had received its NOC earlier, Al Hind Air and FlyExpress were cleared this week.
India’s domestic aviation market is currently dominated by IndiGo and the Tata-owned Air India Group, which together account for nearly 90% of total passenger traffic. Recent large-scale delays and cancellations at IndiGo underscored how operational stress at a single airline can have a ripple effect across the broader aviation ecosystem.
“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,” Naidu said in a post on X, adding that encouraging new entrants remains a key priority for the government.
Al Hind Air is part of the Kerala-based Alhind Group, while FlyExpress is backed by a Hyderabad-based courier and cargo services company. Shankh Air plans to focus on regional and metro routes, particularly connecting cities in Uttar Pradesh such as Lucknow, Varanasi, Agra and Gorakhpur.
The minister noted that policy initiatives under the Modi government aim to expand capacity and competition across both metro and regional routes. Schemes such as UDAN have already enabled smaller carriers like Star Air, IndiaOne Air and Fly91 to improve connectivity to underserved destinations.
While an NOC allows airlines to formally initiate the setup process, it does not permit commercial operations. The next critical step is obtaining an Air Operator Certificate (AOC) from the Directorate General of Civil Aviation (DGCA), which requires meeting stringent requirements related to finances, aircraft acquisition, crew training, safety systems and regulatory proving flights.
Market concentration concerns intensified earlier this month after IndiGo faced challenges implementing new crew-rostering norms, leading to widespread cancellations and passenger disruption. IndiGo currently commands over 60% market share, while the Air India Group holds about 25%, with smaller players such as Akasa Air and SpiceJet accounting for the remainder.
