Indian Aviation Sector Set To Expand As Three New Airlines Receive NOCs From Civil Aviation Ministry, To Break IndiGo-Air India Duopoly

Mumbai: The Indian aviation sector is set to expand soon as three new airlines are set to enter the commercial passenger aviation industry and dismantle the current duopoly in India’s domestic skies. After Shankh Air, the Ministry of Civil Aviation (MoCA) has granted no objection certificates (NOCs) to two more aspiring airlines, including Alhind Air and FlyExpress.

Minister Announces NOCs Amid Industry Turmoil

On Tuesday, union civil aviation minister Ram Mohan Naidu Kinjarapu announced that the ministry has granted NOCs to both the airlines, while Shankh Air has received the NOC earlier and is expected to commence operations early in 2026. The announcement comes at a critical time for the industry as recent massive operational disruptions at IndiGo, which saw over 4,500 flight cancellations earlier this month, have intensified calls for greater competition and more robust consumer choice.

The three airlines will bring different regional focuses and business models to the table. The Noida-based Shankh Air’s key focus will be on flying regionally from Uttar Pradesh, which will also be the first scheduled full-service airline from the state. It plans to link Lucknow, Varanasi and Gorakhpur to major metros.

Alhind Air Eyes Southern India and Gulf Routes

Cochin-based Alhind is promoted by Kerala-based travel company Alhind Group. While it aims to start as a regional commuter from southern cities of India using ATR 72-600 aircraft, it will focus on expanding its operations to the Gulf countries. Similarly, FlyExpress aims to benefit from the union government’s UDAN scheme by providing regional connectivity to Tier- 2 and Tier-3 cities.

“It has been an endeavour of the ministry to encourage more airlines in Indian Aviation which is amongst the fastest growing aviation markets in the world,” said Kinjarapu, adding that schemes like UDAN have enabled smaller carriers Star Air, India One Air and Fly91 to play an important role in the regional connectivity within the country, highlighting more scope for further growth.

Currently, the Indian market is heavily concentrated, with IndiGo and the Air India Group (including Air India Express) controlling over 90% of domestic passenger traffic. The decision to fast-track these NOCs is seen as a strategic push to decentralise market power and break the duopoly structure.

Breaking the Duopoly in Domestic Aviation

Industry analysts expect these regional carriers to begin commercial operations as early as 2026, promising travelers more competitive pricing and better connectivity to India's growing Tier-2 and Tier-3 cities. Experts also believe that these airlines will help the industry in moving away from the saturated market share.

While the NOC is a significant milestone, it is only the first step. The airlines must now secure an Air Operator Certificate (AOC), which involves rigorous safety and operational audits by the Directorate General of Civil Aviation (DGCA). Both Alhind Air and Shankh Air have already begun the process of leasing aircraft, with a preference for fuel-efficient narrow-body and turboprop models. Moreover, each carrier must complete successful test flights to demonstrate readiness.

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