India Approves Two New Airlines Amid IndiGo Crisis

The Civil Aviation Ministry of India has granted initial clearance to Al Hind Air and Fly Express, weeks after IndiGo’s mass flight cancellations exposed the lack of competition in the domestic aviation sector. The announcement was made by Aviation Minister Ram Mohan Naidu on December 23, 2025, via a post on X.

IndiGo Crisis Highlights Market Gaps

IndiGo canceled approximately 4,500 flights early October, resulting in thousands of passengers being left without any means of transportation. The situation highlighted the airline’s control of the market and its 65% share as well as asking for governmental measures in support of the competition. Air India Group holds about 27% of the market, while smaller carriers share the remaining percentage.

New Airlines Ready to Take Off

Al Hind Air intends to use a fleet of ATR Turboprop aircraft for its operations in southern India and is currently applying for an Air Operator Certificate (AOC). The airline is supported by Alhind Group from Kerala.
The website of Fly Express at the moment reads “coming soon”, revealing its imminent presence in the aviation market of India.
Uttar Pradesh-based Shankh Air already possesses a No Objection Certificate (NOC) and is projected to commence flight services in 2026.

In total, six new air carriers, among them regional ones, have been given licenses by India’s aviation authority since 2020 to improve the competition within the domestic market. Besides Air India, Air India Express, IndiGo, and Alliance Air, the other scheduled airlines in India are Akasa Air, SpiceJet, Star Air, Fly91, and IndiaOne Air, as per DGCA data.

The allowment of these new carriers by the government is the first step in making competition stronger and lessening the dangers that come with depending on one major airline.

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High-speed rail corridor cleared; E Sreedharan to spearhead project planning

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IndiGo Vacates 717 Domestic Airport Slots After DGCA Curbs Winter Operations

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Steel Sector Cartelisation Under CCI Scanner

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Union Budget 2026: Logistics Sector Demands ₹3 Trillion Allocation

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IndiGo to Surrender Unused Airport Slots Amid Operational Reset

IndiGo, which operates as India’s biggest airline, will return its unused airport slots after the company decided to stop operations because of regulatory violations which occurred during the previous month. The airline received a flight reduction