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While the number of air passengers has increased rapidly in recent years, high costs, heavy debt, and operational challenges have been major obstacles to the entry of new players.

In a significant move to increase competition in India's aviation sector and provide more options for passengers, the central government has granted operational approval to two new airlines, AI Hindi Air and FlyExpress. The Ministry of Civil Aviation has issued No Objection Certificates (NOCs) to both companies.

Efforts to Ease Burden on the Aviation Sector

This decision comes at a time when the IndiGo crisis and increasing operational pressures on some other airlines have limited competition in the domestic aviation market. While the number of air passengers has increased rapidly in recent years, high costs, heavy debt, and operational challenges have been major obstacles to the entry of new players. The government's move is seen as an attempt to reduce the excessive dominance of existing companies in the domestic aviation sector and bring balance to the market.

In addition, Uttar Pradesh-based Shankh Air has already received its NOC and is expected to begin commercial flights from 2026. Currently, only nine airlines are active in India's domestic aviation sector, a number that further decreased after Fly Big ceased operations in October. The Indian aviation market is currently dominated by IndiGo and the Air India group.

Increased Competition in the Skies

IndiGo alone holds approximately 65 percent of the domestic market, while together with Air India and Air India Express, this control reaches nearly 90 percent. The entry of new players is expected to not only increase competition but also lead to more balanced ticket prices, improved service quality, and better options for passengers. Overall, the entry of new companies like AI Hindi Air, FlyExpress, and Shankh Air is likely to intensify competition in the Indian skies and give a new impetus to the aviation industry in the coming years.