India’s aviation sector is set to see added competition as the government approves 3 new domestic airlines. Al Hind Air, FlyExpress, and Shankh Air have been cleared for entry into a space mainly held by IndiGo and the Air India Group.
On December 24, 2025, Civil Aviation Minister K Rammohan Naidu announced that Al Hind Air and FlyExpress have received their No Objection Certificates (NOCs) from the government.
Shankh Air, based in Uttar Pradesh, had already received its NOC and is set to begin commercial operations by 2026.
These carriers aim to diversify the Indian aviation sector, currently dominated by IndiGo with a market share of over 65% and the Air India Group, which collectively commands more than 90% of the domestic airline market.
Al Hind Air is backed by the Kerala-based alhind Group. FlyExpress joins a group of aspiring airlines as India pushes for broader participation in one of the world's rapidly growing airline markets.
The move follows the suspension of regional player Fly Big in October, reducing the number of operational domestic carriers to 9. The approval of these 3 airlines comes amidst market concerns raised by recent operational disruptions at major airlines, especially IndiGo.
Read More: IndiGo to Start ₹10,000 Compensation Payouts From Dec 26, 2025: Check if You Are Eligible!
The Ministry of Civil Aviation has emphasised its focus on increasing airline participation, especially in underserved regions, under the UDAN scheme.
Through this scheme, regional connectivity has expanded, with smaller carriers like Star Air, Fly91, and IndiaOne Air servicing lesser-known routes.
The newly cleared airlines are likely to utilise such routes to establish operations in a largely centralised industry.
The entry of new carriers follows a period where airlines such as Jet Airways and Go First exited operations due to financial challenges.
The volatility in the civil aviation sector has made stability and cost management key operational priorities.
As of now, India’s scheduled carriers include IndiGo, Air India, Air India Express, Alliance Air, Akasa Air, SpiceJet, Star Air, Fly91, and IndiaOne Air.
The addition of Al Hind Air, FlyExpress, and Shankh Air aims to increase competition in India's tightly held airline industry. These approvals could assist in easing passenger dependence on existing dominant carriers.
Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.
Published on: Dec 25, 2025, 1:58 PM IST
Team Angel One
We're Live on WhatsApp! Join our channel for market insights & updates
Get the link to download the App
