After IndiGo crisis, Centre clears two new airlines to lift competition

The Centre has granted NOCs to two new airlines amid efforts to boost competition and avoid repeat disruptions following the cancellation of over 4,000 IndiGo flights earlier this month

As the Indian aviation industry recovers from the recent IndiGo crisis, Civil Aviation Minister Ram Mohan Naidu on Tuesday said the government has cleared the way for two new airlines.

 

"Over the last one week, pleased to have met teams from new airlines aspiring to take wings in Indian skies—Shankh Air, Al Hind Air and FlyExpress. While Shankh Air has already got the no objection certificate (NOC) from the ministry, Al Hind Air and FlyExpress have received their NOCs this week," Naidu said in a post on X.

 

Naidu said encouraging new airlines remains a key focus of the ministry, noting that Indian aviation is among the world’s fastest-growing markets. "Schemes like UDAN have enabled smaller carriers like Star Air, India One Air, Fly91, etc to play an important role in the regional connectivity within the country and there is more scope for further growth," he added.

 

The move comes against the backdrop of recent disruptions in the aviation sector caused by the cancellation of over 4,000 IndiGo flights between December 1 to 9, mainly due to difficulties in the implementation of the new Flight Duty Time Limitations (FDTL) norms. The budget carrier is currently facing multiple investigations and flight reductions due to the chaos.

 

It also comes as part of the Centre's damage control measures to avoid recurrence of a similar situation in future. During the crisis, Naidu informed Parliament that the Centre has been continuously working to encourage competition in the aviation sector.

 

"We have envisioned the demand to be growing at such a rate that we want to have more airlines in the picture... The demand that India is creating today, we need to have five big airlines, and that has been the effort from the ministry to encourage more airlines to join the industry," Naidu said in the Rajya Sabha.

 

His statement and the latest move highlight the importance of competition in a sector currently dominated by IndiGo and Air India, which together account for about 85 per cent of the market, according to Finshots.