India Greenlights Three New Airlines to Boost Competition and Connectivity

New Entrants to Indian Skies

The Indian aviation landscape is set for a significant transformation with the Union Ministry of Civil Aviation granting approvals to three new domestic airlines: Al Hind Air, Shankh Air, and FlyExpress. This strategic decision, confirmed by Civil Aviation Minister K Rammohan Naidu in late December 2025, aims to inject greater competition into a market largely dominated by a few major players. While Shankh Air had previously secured its No Objection Certificate (NOC), Al Hind Air and FlyExpress received theirs this week, paving the way for all three to commence operations in 2026.

Addressing Market Concentration and Recent Disruptions

The approvals come in the wake of a major operational crisis that affected IndiGo, India's largest airline, in early December 2025. This 'meltdown' led to the cancellation of thousands of flights, stranding passengers and highlighting concerns about the fragility of a market where IndiGo and the Air India Group collectively hold over 90% of the domestic share. Minister Naidu emphasized that encouraging new airlines is a consistent policy objective, particularly to foster a more resilient and competitive aviation environment.

Profiles of the New Carriers

Each of the newly approved airlines is poised to carve out its niche in the Indian market:

• Al Hind Air: Promoted by the Kerala-based Alhind Group, this airline plans to operate as a regional commuter, initially focusing on southern India with ATR 72-600 aircraft. Its hub will be in Kochi, and it is currently in the process of securing its Air Operator Certificate (AOC).
• Shankh Air: Backed by Uttar Pradesh-based Shankh Aviation and led by Chairman and MD Sharvan Kumar Vishwakarma, Shankh Air intends to be a full-service airline. It plans to base its operations at the upcoming Noida International Airport, connecting major cities within and beyond Uttar Pradesh. The airline aims to launch in the first quarter of 2026 and scale its fleet to 20-25 aircraft over the next two to three years, including Airbus A320 and A321 models.
• FlyExpress: Headquartered in Hyderabad, Telangana, FlyExpress is supported by promoters with experience in logistics and cargo. The airline is expected to concentrate on connecting Tier-2 and Tier-3 cities, leveraging the government's UDAN scheme to serve underserved routes. It is also working towards obtaining its AOC, with commercial operations anticipated to begin in 2026.

Future Outlook for Indian Aviation

The entry of these three carriers is seen as a crucial step towards diversifying India's rapidly growing aviation sector. While they still need to complete further regulatory and operational milestones, their presence is expected to lead to more affordable ticket pricing, improved flight availability, and enhanced service quality, particularly benefiting middle-class travelers and regional connectivity. The Directorate General of Civil Aviation (DGCA) will oversee the subsequent stages of their certification process.