Government Clears Path for Three New Airlines to Boost Competition in Indian Skies

Indian aviation sector sees entry of new airlines following government approval
Government approval for new airlines aims to expand competition and passenger choice in India’s rapidly growing aviation market.

The Union Civil Aviation Ministry has taken a significant step to increase competition in India’s domestic aviation market by issuing No Objection Certificates (NOCs) to three emerging carriers. The move is aimed at broadening airline choices for flyers and reducing the heavy concentration of market share held by a few major players. 

The two airlines that received fresh approvals this week are Al Hind Air and FlyExpress, both of which are now cleared to move ahead with preparations to commence operations. These approvals follow a series of meetings between Civil Aviation Minister K. Rammohan Naidu and representatives of all three prospective carriers. 

A third airline, Shankh Air, based in Uttar Pradesh, had already secured its NOC from the ministry earlier and is expected to begin commercial flights in 2026. With clearances now in place, each airline will proceed toward meeting the regulatory requirements and operational certifications needed before launching services. 

The government’s initiative comes against a backdrop of rapid growth in air travel demand and ongoing concerns about limited competition within the sector. Currently, the majority of domestic passenger traffic is served by a small number of large carriers. The move to approve new entrants is seen as part of a broader effort to offer travellers more choices, encourage competitive pricing, and improve overall service levels. 

Civil Aviation Minister Naidu underscored that expanding the number of airlines is a key priority for the ministry, reflecting the country’s status as one of the fastest-growing aviation markets in the world. He noted that schemes such as UDAN have already supported regional connectivity by helping smaller carriers operate in underserved airports, and that there remains significant potential for further expansion across the network. 

The entry of these new airlines is expected to gradually reshape India’s aviation landscape as they work toward commencement of operations over the coming year.

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