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New Wings for India: Three Airlines Approved as Govt Moves to Break Aviation Duopoly After IndiGo Meltdown, All You Need to Know

India greenlights Shankh Air, Al Hind Air, and FlyExpress to boost competition following the massive IndiGo operational crisis.

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On Wednesday, 24 December 2025, the Union Ministry of Civil Aviation granted No Objection Certificates (NOCs) to three new carriers, Shankh Air, Al Hind Air, and FlyExpress.

This regulatory fast-tracking follows a massive operational “meltdown” at IndiGo earlier in December, which saw over 5,000 flights cancelled in a week, leaving thousands of passengers stranded due to pilot shortages and new rest-hour regulations.

Civil Aviation Minister Ram Mohan Naidu confirmed that the move aims to break the 90 per cent market duopoly held by IndiGo and the Air India Group, fostering a more resilient and competitive aviation landscape.

While Shankh Air is slated for a 2026 launch from Noida, the other two entrants are expected to begin regional operations as early as next year.

India’s Airlines Crisis

The approval comes at a critical juncture for Indian flyers, following the “IndiGo Crisis” that nearly crippled one of the world’s fastest-growing aviation markets. In early December 2025, IndiGo faced an unprecedented collapse, grounding approximately 1,600 flights on 5 December alone.

The crisis was triggered by a clash between the airline’s high-utilisation business model and the new Flight Duty Time Limitation (FDTL) regulations designed to ensure pilot safety. This operational failure highlighted the extreme vulnerability of a market where two major players control nearly all domestic traffic.

Historically, the Indian aviation sector has been a graveyard for smaller carriers, but the government now views the entry of fresh competition as a national necessity to prevent systemic paralysis.

New Airlines Approved

The three new airlines bring distinct regional strategies to the Indian skies. Shankh Air, based in Uttar Pradesh, plans to operate as a full-service carrier from the upcoming Noida International Airport, connecting cities like Lucknow and Varanasi to major tier-1 hubs.

Al Hind Air, promoted by the Kerala-based Alhind Group, will debut as a regional commuter with a fleet of ATR 72-600 aircraft centered in Kochi. FlyExpress, based in Hyderabad, is expected to focus on underserved Tier-2 and Tier-3 routes.

Civil Aviation Minister Ram Mohan Naidu stated on X that it has been the endeavour of the ministry to encourage more airlines, adding that schemes like UDAN have already demonstrated the vital role smaller carriers play in regional connectivity.

Benefits to Flyers

For the average Indian flyer, the entry of these airlines promises more than just more planes; it offers a buffer against predatory pricing and systemic failures. Increased competition typically leads to more affordable fares on regional routes, which are often expensive due to lack of options.

Moreover, these airlines are focusing on Tier-II and Tier-III cities, reducing the need for passengers to travel to major metros just to catch a connecting flight.

By diversifying the market, the government ensures that a crisis at one major airline no longer paralyses the entire nation’s travel plans, providing citizens with the dignity of choice and more reliable, human-centric service standards.

IndiGo Crisis

The “IndiGo Meltdown” of December 2025 served as a stark wake-up call for the industry, exposing the risks of a market dominated by a single giant. The crisis peaked between 3 December and 5 December, when over 2,500 flights were cancelled in just 72 hours, leaving nearly 4 lakh passengers stranded.

As of today, 27 December, IndiGo has begun a massive ₹376 crore payout exercise, issuing ₹10,000 travel vouchers to “severely impacted” customers. This fallout proved that aggressive flight scheduling without adequate pilot buffers is unsustainable under the new DGCA safety norms.

The government’s rapid approval of new airlines is a direct attempt to ensure that such an operational vacuum never leaves the Indian public stranded again.

The Logical Indian’s Perspective

At The Logical Indian, we welcome the move to break the existing duopoly in our skies, as true democracy in travel can only exist through healthy competition and consumer choice.

The recent IndiGo crisis was a stark reminder that when profit-driven high-utilisation models clash with essential safety regulations, it is the common citizen who pays the price in lost time and mental agony.

We believe that for these new airlines to succeed, the government must ensure a level playing field where smaller operators are not priced out by the giants. Strengthening regional connectivity is not just about business; it is about providing every Indian with the dignity of reliable and affordable mobility.

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