India’s civil aviation sector is poised for increased competition as new airlines, AI Hind Air and FlyExpress, received no objection certificates from the Union Civil Aviation Ministry. Additionally, Shankh Air, which has already secured regulatory approval, plans to commence commercial operations in 2026. Civil Aviation Minister K Rammohan Naidu highlighted efforts to promote airline startups through various government schemes such as UDAN, aiming to diversify India’s rapidly growing aviation market.
Currently, the market is dominated by IndiGo and Air India Group, which together control over 90% of domestic traffic, with IndiGo alone accounting for more than 65%. The government’s renewed push to induct new players comes amid concerns over the sector’s duopoly and recent operational disruptions, including the large-scale flight cancellations by IndiGo triggered by regulatory changes. Industry analysts see these approvals as part of a strategic move to foster healthy competition and address the sector's consolidation issues, ensuring sustainable growth in India’s aviation landscape.
