After IndiGo crisis, India grants NOCs to two airlines to boost competition

The next, and more challenging, step is securing an Air Operator Certificate (AOC) from the DGCA.

The Centre has granted No Objection Certificates (NOCs) to two new airline applicants, Al Hind Air and FlyExpress, in a move aimed at widening competition in India’s highly concentrated aviation market, following recent operational disruptions at IndiGo.

Civil Aviation Minister Ram Mohan Naidu, late Tuesday evening, stated that the aviation ministry has engaged with teams from three aspiring airlines over the past week.

While Shankh Air had received its NOC earlier, Al Hind Air and FlyExpress were cleared this week.

The approvals come at a time when India’s domestic aviation market is dominated by two major players, IndiGo and the Tata-owned Air India Group, which together account for nearly 90% of passenger traffic. Recent large-scale delays and cancellations at IndiGo highlighted how stress at a single airline can quickly cascade across the wider aviation network.

“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 said in a post on X, adding that encouraging new entrants remains a key government priority.

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. 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

Al Hind Air is part of Kerala-based Alhind Group, while FlyExpress is backed by a Hyderabad-based courier and cargo services company. Shankh Air plans to operate regional and metro routes, with a focus on connecting key cities in Uttar Pradesh such as Lucknow, Varanasi, Agra, and Gorakhpur.

The minister said policy initiatives under the Modi government are focused on expanding capacity and competition across both metro and regional routes. He cited schemes such as UDAN, which have enabled smaller carriers like Star Air, IndiaOne Air and Fly91 to improve connectivity to underserved cities.

An NOC allows airlines to formally begin setting up operations, but does not permit commercial flying. The next, and more challenging, step is securing an Air Operator Certificate (AOC) from the Directorate General of Civil Aviation (DGCA). This requires airlines to demonstrate financial capability, acquire aircraft, recruit trained crew, establish safety systems, and complete regulatory proving flights.

Concerns over market concentration intensified earlier this month after IndiGo struggled to implement new crew-rostering norms mandating longer rest periods and stricter limits on night operations. The airline was forced to cancel hundreds of flights nationwide, reportedly grounding a significant portion of its fleet and stranding thousands of passengers.

IndiGo currently holds over 60% market share, while the Air India Group controls about 25%, 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.