India Clears Two New Airlines to Boost Competition After IndiGo Disruptions
India has granted initial regulatory clearance to two new airlines, alHind Air and FlyExpress, in a move aimed at strengthening competition in the country’s rapidly expanding aviation market. Civil Aviation Minister Ram Mohan Naidu announced that the ministry has issued no-objection certificates to both carriers, underscoring the government’s intent to encourage new entrants in domestic air travel.
The decision comes weeks after mass flight cancellations by market leader IndiGo, which highlighted risks associated with high market concentration. Earlier this month, around 4,500 IndiGo flights were cancelled due to staffing issues, leaving tens of thousands of passengers stranded across airports nationwide and prompting analysts to call for policy measures to attract more airlines.
IndiGo currently controls about 65% of India’s domestic aviation market, followed by the Air India Group with roughly 27%, while smaller carriers share the remainder. According to its website, alHind Air plans to launch services in southern India using ATR turboprop aircraft and is in the process of securing its Air Operator Certificate, while FlyExpress has signalled that operations are “coming soon.” Since 2020, India has granted permits to six air operators, reflecting a gradual push to widen competition in the sector.
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