India’s civil aviation sector is preparing for new competition as the government issues key approvals to three prospective airlines. The Union Civil Aviation Ministry has issued No Objection Certificates (NOCs) to two new airline applicants — Al Hind Air and FlyExpress — allowing them to proceed with setting up their businesses. Along with these, Shankh Air, a carrier based in Uttar Pradesh that already had its NOC, is now expected to begin flight operations in 2026.

The issuance of these NOCs marks a major step in the country’s attempt to widen participation in one of the world’s fastest-growing domestic aviation markets. The government’s move aims to challenge the current market structure, which has been dominated by a few large carriers for many years.

At present, only nine scheduled domestic airlines are operational in India. This number had become even smaller in October when regional airline Fly Big stopped its scheduled flights. The approvals for Al Hind Air and FlyExpress come at a time when policymakers are emphasising the importance of expanding competition and reducing dependence on a small number of carriers.

Under the current market conditions, IndiGo and the Air India Group together control more than 90 % of the domestic aviation sector. The Air India Group includes Air India and Air India Express, and IndiGo alone holds a share of more than 65% of the market. This high level of domination has made it difficult for new airlines to enter and grow, leading to concerns about reduced choice and higher prices for passengers.

Al Hind Air is being promoted by the Kerala-based Alhind Group. With its new NOC, it can now take the necessary steps towards acquiring aircraft, hiring staff and setting up all required systems to begin flights. Similarly, FlyExpress, which received its clearance this week, joins the group of aspiring carriers looking to enter India’s aviation industry. Both airlines will need to complete several regulatory and operational requirements before they can start flying commercially.

Meanwhile, Shankh Air, which is based in Uttar Pradesh and already holds its NOC, is expected to begin operations in 2026. Shankh Air has been planning to connect cities within Uttar Pradesh and other cities across India once it begins service. Its earlier clearance means it is already ahead in the operational process compared to the two new applicants.

The approvals come amid growing concern about India’s aviation market being dominated by only a few major players. Over-dependence on a small number of airlines makes the industry vulnerable to disruptions when problems arise at one airline, which can then affect the entire network. These concerns were highlighted earlier this month when operational issues at IndiGo caused widespread flight disruptions across the country, affecting many passengers.

Civil Aviation Minister K. Rammohan Naidu confirmed the latest approvals on the social media platform X. In his post, he said that over the past week, he had met with teams from Shankh Air, Al Hind Air and FlyExpress. He noted that while Shankh Air already had its clearance, the ministry had just issued NOCs to Al Hind Air and FlyExpress.

Naidu also emphasised that encouraging more airlines to enter the domestic market has been a consistent policy objective. He said the Indian aviation sector is one of the fastest-growing in the world and that the government wants to see more players participate in it. This, he added, would benefit passengers and improve connectivity across the country.

The minister also highlighted the UDAN (Ude Desh Ka Aam Nagrik) scheme, a government initiative aimed at improving regional connectivity. Under UDAN, smaller carriers such as Star Air, India One Air and Fly91 have expanded their services to underserved routes, linking smaller cities to the national aviation network. Naidu said there is still “scope for further growth” in this segment, indicating that the government hopes even more airlines may join the market in future.

To begin actual operations, Al Hind Air and FlyExpress must now go through the next significant step: obtaining an Air Operator Certificate (AOC) from the Directorate General of Civil Aviation (DGCA). This certification process requires airlines to meet a range of safety, operational and financial criteria before they can carry passengers. Only after securing an AOC will these carriers be able to start commercial flights.

The addition of these new airlines is intended to make the domestic market more competitive and offer passengers more choices. It is also expected to help control prices and improve services, especially on routes where only a few airlines currently operate.

According to the DGCA’s latest data, the current scheduled carriers include IndiGo, Air India, Air India Express, state-owned Alliance Air, Akasa Air, SpiceJet, Star Air, Fly91 and IndiaOne Air. With the entry of new airlines like Al Hind Air, FlyExpress and Shankh Air, this list may soon expand, potentially changing the landscape of India’s civil aviation sector.

The approval of these carriers also comes against the backdrop of past airline failures in India. Over the last few years, several airlines, such as Jet Airways and Go First had to cease operations amid financial and operational challenges. These past closures underscored the volatility of the aviation sector and the difficulties new airlines face when entering a highly competitive and capital-intensive industry.

The government’s decision to issue NOCs to Al Hind Air and FlyExpress, along with the existing clearance for Shankh Air, is seen as a step towards increasing competition in India’s domestic aviation sector. With the current dominance of a few large carriers, expanding the number of airline operators is expected to bring more choices for air travellers, improve connectivity across the country, and support the long-term growth of the aviation market.