New Delhi: In the aftermath of widespread disruption caused by IndiGo’s recent operational crisis, the government has granted initial approvals to new airlines to enhance competition in India’s domestic aviation sector.
The Ministry of Civil Aviation has issued no-objection certificates (NOCs) to regional carriers Shankh Air, Al Hind Air, and FlyExpress, Union Civil Aviation Minister Ram Mohan Naidu announced in a post on X. The move comes amid growing concerns over market dominance by IndiGo, which left thousands of passengers stranded for several days due to mass flight cancellations.
The minister said the government is committed to encouraging greater competition in the domestic aviation market and reducing over-dependence on a few large carriers.
Al Hind Air, promoted by the Kerala-based Alhind Group, plans to commence operations in southern India using ATR turboprop aircraft and is currently in the process of securing its Air Operator Certificate. FlyExpress has indicated on its website that it will begin operations soon, while Shankh Air is expected to launch commercial services next year.
India’s domestic aviation market is currently functioning as a near duopoly, with IndiGo controlling around 65 per cent market share and Air India accounting for about 27 per cent. Smaller airlines such as SpiceJet and Akasa make up the remaining share.
Earlier this month, IndiGo cancelled more than 4,000 flights across major airports including Delhi, Mumbai, Hyderabad, and Bengaluru, primarily due to acute crew shortages. The disruptions followed the implementation of the second phase of Flight Duty Time Limitation (FDTL) norms, which significantly impacted crew availability and grounded several aircraft.
Union Civil Aviation Minister K. Rammohan Naidu informed Parliament that the government has ordered an inquiry into IndiGo’s large-scale cancellations, which stranded thousands of passengers nationwide. He said strict action would be taken against the airline to set an example for other operators, describing the chaos as the result of IndiGo’s “internal crisis” following the enforcement of new passenger safety regulations.
The minister reiterated that the government wants more players in the aviation sector and believes India has the potential to sustain at least five major airlines.
The root of the disruption lay in flight safety rules introduced nearly two years ago to address pilot fatigue and enhance passenger safety. The phased implementation of these norms required airlines to significantly increase pilot recruitment.
IndiGo, which operates around 2,200 flights daily and traditionally focuses on high aircraft utilisation, fell short of adequate crew strength as the new rules came into force. This led to widespread cancellations and severe inconvenience for passengers.
As the situation escalated, the Directorate General of Civil Aviation (DGCA) temporarily relaxed the new duty time norms until February, allowing the airline to stabilise its operations.
The IndiGo crisis also triggered criticism from the Opposition over the duopolistic structure of India’s civil aviation sector. In response, the government maintained that it has consistently encouraged new entrants and remains focused on fostering a more competitive and resilient aviation ecosystem.