After the IndiGo operational crisis, the government has taken a major decision to take the Indian aviation sector out of the dominance of a few companies. India’s aviation market had for some time been limited to the dominance or ‘duopoly’ of aviation companies like IndiGo and Air India. This situation may change with the latest steps of the government. The central government has given the green signal to new airlines with the aim of increasing competition in the market.
The Civil Aviation Ministry has issued No Objection Certificate (NOC) to Al-Hind Air and FlyExpress. Along with this, Uttar Pradesh-based Shankha Air is also preparing to start its services in 2026. This airline has already received NOC.
Efforts to end monopoly in aviation sector
Currently, Tata Group’s Air India and IndiGo have sole control over the Indian skies. According to DGCA data, these two groups hold more than 90% of the domestic market. In this also, about 65% stake is with Indigo alone. Due to this ‘duopoly’, passengers often have to suffer the brunt of limited options and arbitrary fares. The recent technical glitches at IndiGo airline proved how risky it can be to be overly dependent on a single player in the market.
Union Civil Aviation Minister K. Rammohan Naidu said on social media platform X that the government aims to encourage new players in the aviation market so that balance is maintained in the market and passengers can get better facilities.
Who are the new players in the aviation market?
Al-Hind Air
This airline, promoted by Kerala-based Al-Hind Group, is going to make its debut in South India. Al-Hind Group is already a big name in the travel and tourism sector, with a turnover said to be around Rs 20,000 crore. The company plans to initially fly regional routes with ATR-72 aircraft, and aims to add international routes, especially to Gulf countries, with Airbus A320 aircraft in the future.
Shankh Air
This will be Uttar Pradesh’s first own airline. Shankha Air, which will make Lucknow and Noida (Jewar Airport) its hub, has already received approval and is expected to start operations by 2026. This airline will focus on connecting North Indian cities with major metros.
flyexpress
This new airline has also received NOC from the ministry, indicating new investments and opportunities in the sector.
Will passengers get cheaper tickets?
Market experts believe that with the entry of new players a ‘fare war’ may start, which will directly benefit the passengers in the form of lower fares. With the increase in regional connectivity under the “UDAN” scheme, passengers in Tier-2 and Tier-3 cities are now expected to get connectivity like metro cities.
Operating in India’s aviation market is full of challenges
However, the history of the Indian aviation sector has been quite turbulent. The collapse of established airline companies like Go First and Jet Airways shows how sensitive this market is. Rising fuel prices and operating costs will be the biggest challenges for new airlines. Now it will be interesting to see whether Al-Hind Air, Flyexpress and Shankha Air will be able to change the equations of the Indian aviation market or the dominance of IndiGo and Air India will continue like this.
