India’s aviation landscape could gradually become more competitive after the civil aviation ministry granted no-objection certificates (NOCs) to two proposed carriers—Al Hind Air and FlyExpress—allowing them to move ahead with preparations for commercial operations. The move is seen as part of the government’s effort to reduce over-reliance on a handful of dominant airlines and strengthen the sector’s resilience.

The approvals come against the backdrop of strong growth in domestic air travel but limited choice for passengers. Another upcoming carrier, Shankh Air from Uttar Pradesh, had already secured its NOC earlier and is targeting a commercial launch in 2026. Together, these entrants are expected to incrementally expand options in a market currently controlled by a few major players.

India at present has only nine scheduled domestic airlines in service, a number that shrank further after regional operator Fly Big halted scheduled flights in October. This has heightened concerns about the sector’s ability to cope with disruptions, especially as annual passenger volumes continue to climb.

The dominance of IndiGo and the Air India Group—comprising Air India and Air India Express—is particularly stark. Combined, they command more than 90 per cent of the domestic market, with IndiGo alone accounting for over two-thirds of all passengers. Recent widespread delays and cancellations at IndiGo earlier this month underscored the risks of such concentration in a rapidly expanding aviation market.

Al Hind Air is being promoted by the Kerala-based Alhind Group, which already operates across travel and related services. FlyExpress is another proposed airline looking to tap into sustained demand for domestic air travel. Both carriers will still need to complete several regulatory approvals and operational milestones before they can begin flying.

Civil Aviation Minister K. Rammohan Naidu confirmed the developments in a social media post, stating that meetings had been held with representatives of Shankh Air, Al Hind Air and FlyExpress. While Shankh Air had received clearance earlier, the NOCs for the other two airlines were issued this week.

The minister reiterated that expanding the number of airlines has been a long-term objective, particularly given the rapid growth of the sector. He also pointed to initiatives such as the UDAN scheme, which aims to improve air connectivity to smaller cities and towns.

Under UDAN, carriers like Star Air, IndiaOne Air and Fly91 have launched services on previously underserved routes, bringing regional centres into the national aviation network. Officials say there remains significant scope to deepen such regional connectivity.

According to the Directorate General of Civil Aviation, India’s current scheduled domestic airlines include IndiGo, Air India, Air India Express, Alliance Air, Akasa Air, SpiceJet, Star Air, Fly91 and IndiaOne Air. Past exits of carriers such as Jet Airways and Go First continue to serve as reminders of the financial and operational challenges inherent in the aviation business.

(Image is used for representation only)