In a strategic move to bolster competition within its rapidly growing aviation sector, India has granted preliminary operational approval to two new airlines. This development comes shortly after widespread flight cancellations by market leader IndiGo exposed systemic vulnerabilities stemming from excessive market concentration.
The Civil Aviation Ministry issued formal ‘no-objection certificates’ to regional startup alHind Air and carrier FlyExpress earlier this week. Minister Ram Mohan Naidu confirmed the regulatory milestone through an official social media announcement, emphasizing the government’s commitment to fostering increased competition in domestic air travel.
The urgency for market diversification became apparent earlier this December when IndiGo’s operational crisis led to approximately 4,500 cancelled flights. The disruption stranded tens of thousands of passengers nationwide and revealed the risks associated with the carrier’s 65% market dominance. Air India Group follows as distant competitor with approximately 27% market share, while smaller operators account for the remaining portion.
According to operational plans, alHind Air intends to commence services in southern India utilizing ATR Turboprop aircraft, currently progressing through the final Air Operator Certificate acquisition process. FlyExpress similarly indicates impending market entry through its digital communications.
This authorization continues a pattern of regulatory expansion, with six air operators receiving permits since 2020, including several regional specialists. The approvals represent India’s deliberate strategy to transform its aviation landscape while supporting infrastructure development in underserved regions.