IndiGo shares fall 2% after govt grants NOCs to two new airlines

InterGlobe Aviation

• IndiGo shares fell over 2 percent after NOCs cleared for two new airlines
• Al Hind Air and FlyExpress received government NOCs to begin operations
• IndiGo holds over 60% market share; competition scrutiny underway

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The shares of InterGlobe Aviation, the parent company of popular airline IndiGo, dropped more than 2 percent on December 24 after government cleared no objection certificates (NOC) to two new airlines.

IndiGo shares fell to Rs 5,047.50 apiece, the lowest level seen by the stock in four sessions.

Union Aviation Minister Ram Mohan Naidu Kinjarapu took to X (formerly Twitter) to say that Al Hind Air and FlyExpress have received NOCs from the government to begin operations, after Shankh Air.

"Over the last one week, pleased to have met teams from new airlines aspiring to take wings in Indian skies—Shankh Air, Al Hind Air and FlyExpress," Naidu wrote in his post on X. "While Shankh Air has already got the NOC from Ministry, Al Hind Air and FlyExpress have received their NOCs in this week," he added.

Over the last one week, pleased to have met teams from new airlines aspiring to take wings in Indian skies—Shankh Air, Al Hind Air and FlyExpress.

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While Shankh Air has already got the NOC from Ministry, Al Hind Air and FlyExpress have received their NOCs in this week. It has… pic.twitter.com/oLWXqBfSFU — Ram Mohan Naidu Kinjarapu (@RamMNK) December 23, 2025

Shankh Air aims to connect major cities in Uttar Pradesh—including Lucknow, Varanasi, Agra, and Gorakhpur. Al Hind Air is part of Kerala's Alhind Group, while Fly Express is a Hyderabad-based courier and cargo services company.

According to its website, Al Hind aims to begin operations in southern India with a fleet of ATR Turboprop aircraft. It is in the process of obtaining an Air Operator Certificate. A banner on Fly Express' website also said "coming soon."

An NOC allows airlines to formally begin setting up operations, but does not permit commercial flying.

Naidu highlighted that the government is actively encouraging new airlines to enter what is among the fastest-growing aviation markets in the world. "Schemes like UDAN have enabled smaller carriers like Star Air, India One Air, Fly91, among others, to play an important role in the regional connectivity within the country, and there is more scope for further growth," he said.

IndiGo currently holds over 60 percent market share, while the Air India Group controls about 25 percent, with smaller players such as Akasa Air and SpiceJet trailing far behind. The Competition Commission of India is examining IndiGo’s market position under competition rules.

The calls for more players in India’s aviation industry came under the limelight after a widespread crisis at IndiGo led to massive cancellations and chaos at major airports.

IndiGo share price:

IndiGo shares have gained more than 2 percent in the past five days, but fell over 12 percent in the past one month. The stock has fallen over 9 percent in the past six months.

The stock's P/E ratio stands at around 30.

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