The central government has given early approval to two new airlines to start operations, a move that comes just weeks after massive flight cancellations by IndiGo highlighted how little competition exists in the country’s fast-growing aviation market.
The civil aviation ministry has issued a “no-objection certificate” to regional carrier alHind Air and start-up FlyExpress, civil aviation minister Ram Mohan Naidu said in a post on X. He added that the government wants to encourage more airlines to enter the market and give passengers better options.
The Kerala-based alHind Air plans to start flights in southern India, focusing on regional routes that are often poorly served. According to its website, the airline intends to use ATR turboprop aircraft, which are well suited for short distances and smaller airports. The company is now working to secure its Air Operator Certificate, the final approval needed to begin flying.
FlyExpress has shared fewer details so far, but a message on its website says the airline is “coming soon”. Industry watchers expect it to target budget travellers, a fast-growing segment in India.
The decision follows widespread disruption earlier this month, when IndiGo cancelled around 4,500 flights over a short period due to poor staff planning. The cancellations stranded tens of thousands of passengers across major airports, triggered fare spikes on remaining flights, and renewed criticism of the airline’s dominance. Aviation experts and consumer groups have since urged the government to actively support new players.
IndiGo currently controls about 65 percent of India’s domestic air travel market. The Air India Group, now owned by the Tata Group, holds around 27 percent, while smaller airlines share the remaining slice. This heavy concentration means problems at one airline can quickly turn into a nationwide travel crisis.
India’s aviation market is one of the fastest-growing in the world, driven by rising incomes and strong demand for domestic travel. However, repeated disruptions, high fares during peak seasons, and limited choices have exposed the risks of relying too heavily on one dominant airline.
Since 2020, the government has granted initial approval to six air operators, including several regional carriers. Whether these new airlines can scale up and survive in a tough, price-sensitive market remains to be seen. For passengers, though, even a few new entrants could mean more routes, more seats, and fewer travel nightmares.