Government Push for Competition
Civil Aviation Minister Ram Mohan Naidu announced that the ministry had engaged with teams from three aspiring airlines Shankh Air, Al Hind Air, and FlyExpress over the past week. While Shankh Air had already received its NOC earlier, Al Hind Air and FlyExpress were cleared this week. The minister emphasized that encouraging new entrants remains a key government priority to ensure resilience in the aviation market.
Currently, India’s domestic aviation market is dominated by IndiGo and the Tata-owned Air India Group, which together account for nearly 90% of passenger traffic. The recent IndiGo crisis, involving large-scale cancellations and delays due to crew rostering challenges, underscored how stress at a single airline can disrupt the wider network.
Profiles of New Entrants
Al Hind Air is part of the Kerala-based Alhind Group, while FlyExpress is backed by a Hyderabad-based courier and cargo services company. Shankh Air, meanwhile, plans to operate regional and metro routes, with a focus on connecting key cities in Uttar Pradesh such as Lucknow, Varanasi, Agra, and Gorakhpur.
The entry of these airlines is expected to diversify the market and reduce reliance on the two dominant carriers. The government hopes that new players will strengthen connectivity across both metro and regional routes, aligning with policy initiatives such as the UDAN scheme.
Next Steps: Securing AOC
While an NOC allows airlines to begin setting up operations, it does not permit commercial flying. The next step is securing an Air Operator Certificate (AOC) from the Directorate General of Civil Aviation (DGCA). This process requires airlines to demonstrate financial capability, acquire aircraft, recruit trained crew, establish safety systems, and complete proving flights.
Industry experts note that obtaining an AOC is often the most challenging stage for new entrants, as it involves significant investment and regulatory compliance. However, the government’s proactive stance suggests a supportive environment for new carriers.
Market Context and Challenges
IndiGo currently holds over 60% market share, while the Air India Group controls about 25%. Smaller players such as Akasa Air and SpiceJet trail far behind. The Competition Commission of India is examining IndiGo’s market position under competition rules, reflecting growing concerns about monopolistic tendencies in the sector.
Policy initiatives under the Modi government, including UDAN, have already enabled smaller carriers like Star Air, IndiaOne Air, and Fly91 to improve connectivity to underserved cities. The addition of Al Hind Air and FlyExpress could further strengthen this effort by expanding capacity and competition.
