India grants regulatory clearance to two new airlines amid push for competition

India’s aviation sector is set to see new competition after the civil aviation ministry granted initial regulatory clearance to two new airlines—Al Hind Air and FlyExpress. The move comes amid renewed concerns over market concentration following recent flight disruptions.

Civil Aviation Minister Ram Mohan Naidu said on Tuesday that no-objection certificates (NOCs) have been issued to both carriers. The approvals follow widespread flight cancellations earlier this month, particularly by IndiGo, which highlighted the sector’s dependence on a few dominant players.

IndiGo currently accounts for about 65% of India’s domestic aviation market, while the Air India Group holds nearly 27%, according to a Reuters report, leaving limited room for smaller operators.

Al Hind Air, promoted by the Kerala-based Alhind Group, plans to begin operations as a regional commuter airline, primarily focusing on southern India. The airline intends to operate ATR turboprop aircraft and is in the process of securing its Air Operator Certificate (AOC), a mandatory requirement before starting commercial flights.

According to information on its website, Al Hind Air plans to launch later this year with a fleet of ATR 72-600 aircraft. The airline will be based in Kochi and is working with Cochin International Airport Limited (CIAL) to establish its operational hub.

FlyExpress, the second airline to receive an NOC, has indicated that it is preparing to launch operations soon, although details regarding its fleet and route network have not yet been announced.

The minister also said he has held meetings with teams from Al Hind Air, FlyExpress and Shankh Air, another proposed airline that has already received regulatory clearance. Naidu said the government is encouraging new entrants as India remains one of the world’s fastest-growing aviation markets, supported by policies such as the UDAN regional connectivity scheme.

Under UDAN, smaller airlines like Star Air, IndiaOne Air and Fly91 have expanded regional connectivity, creating scope for further growth by new carriers such as Al Hind Air and FlyExpress.