Two new airlines get green light, but can they break India’s aviation duopoly?

IndiGo and Air India Group -- Air India and Air India Express -- together have over 90 per cent of the domestic market share.

India’s aviation sector is set to see fresh entrants, with two new airlines, Al Hind Air and FlyExpress, receiving no objection certificates (NOCs) from the civil aviation ministry. Another carrier, Uttar Pradesh-based Shankh Air, which already has regulatory clearance, is expected to begin operations in 2026. While the government has signalled its intent to encourage more players in one of the world’s fastest-growing domestic aviation markets, industry experts caution that these additions alone may not be enough to fundamentally alter the sector’s structure.

Al Hind Air is being promoted by the Kerala-based Alhind Group, while FlyExpress is positioned as a regional operator. Civil Aviation Minister K Rammohan Naidu welcomed the developments, saying on X, “Over the last week, I was pleased to have met teams from new airlines aspiring to take wings in Indian skies—Shankh Air, Al Hind Air and FlyExpress. While Shankh Air has already got the NOC from the Ministry, Al Hind Air and FlyExpress have received their NOCs this week.”

Aviation expert, lawyer and Avialaz Consultants CEO Sanjay Lazar described the approvals as a positive but preliminary step. “It’s a much-needed development; however, it’s only the first step in a long chain of steps to be taken,” he said. Pointing to the challenges ahead, Lazar added, “Most often promoters run out of breath by the time they get to starting up with aircraft & crew.” He also flagged structural issues, saying, “The aviation structure in India is such that it is unwelcoming in red tape and in cost structures.”

Lazar argued that the impact of these new entrants on the broader market may be limited. “Most of these new applicants are regional operators apart from Shank Air and thus don’t impact the overall market share of the giants,” he said, adding that “to change India’s aviation landscape will require at least 2 more national players and 2 more regional players in addition to those who have applied.”

Currently, there are nine operational scheduled domestic carriers in the country. Regional airline Fly Big suspended its scheduled flights in October, underscoring the fragile economics of smaller operators. Market concentration remains high, with IndiGo and the Air India Group, comprising Air India and Air India Express, together controlling over 90 per cent of the domestic market.

Concerns over an apparent duopoly have intensified in recent weeks following widespread operational disruptions at IndiGo, which alone commands more than 65 per cent market share. The episode renewed debate on whether India’s fast-expanding aviation market has enough competitive depth to absorb shocks.

Apart from Air India, Air India Express, IndiGo and state-owned Alliance Air, other scheduled carriers include Akasa Air, SpiceJet, Star Air, Fly91 and IndiaOne Air, according to the latest Directorate General of Civil Aviation data. The sector has also seen high-profile exits in recent years, with airlines such as Go First and Jet Airways ceasing operations amid mounting debt.

As new airlines line up for take-off, the developments signal renewed interest and policy support—but analysts say meaningful change in India’s aviation landscape will depend on whether these entrants can scale up sustainably in a market still dominated by a few large players.