India Clears Two New Airlines to Boost Competition After IndiGo Disruptions
India has given initial approval to two new airlines, alHind Air and FlyExpress, to begin operations, aiming to strengthen competition in the domestic aviation market. The civil aviation ministry issued no-objection certificates to both carriers this week, according to aviation minister Ram Mohan Naidu, who said the government is encouraging more players to enter the sector.
The move comes weeks after major operational disruptions at IndiGo, India’s largest airline, which led to around 4,500 flight cancellations due to staffing issues. The incident stranded thousands of passengers nationwide and renewed concerns about the risks of heavy market concentration in the world’s fastest-growing aviation market.
IndiGo currently holds about 65% of India’s domestic market, while the Air India Group accounts for roughly 27%, leaving limited room for smaller carriers. alHind plans to start regional operations in southern India using ATR turboprop aircraft and is seeking an Air Operator Certificate, while FlyExpress has announced that its launch is coming soon. Since 2020, India has approved six new air operators, including regional airlines.
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