India’s Ministry of Civil Aviation has granted no objection certificates (NOCs) to two new airlines — Al Hind Air and FlyExpress — in a move to ease the heavy concentration in India’s domestic aviation market.

The approvals come amid mounting concern over the sector’s growing duopoly, with IndiGo and the Air India Group together accounting for more than 90 per cent of domestic air traffic.

IndiGo alone controls over 65 per cent of the market, fueling worries about excessive dependence on a single carrier.

These concerns were underscored earlier this month when widespread operational disruptions at IndiGo triggered major schedule disruptions, affecting thousands of passengers and exposing vulnerabilities in a highly concentrated industry, Indian news agencies report.

Civil Aviation Minister K. Rammohan Naidu confirmed the clearances in a post on X on Tuesday, stating that the ministry had held discussions with teams from Shankh Air, Al Hind Air and FlyExpress.

While Uttar Pradesh-based Shankh Air had already received its NOC and is expected to begin commercial operations in 2026, Al Hind Air and FlyExpress were granted approvals this week.

The entry of new players is part of the government’s broader effort to widen participation in the aviation sector. Currently, only nine scheduled domestic airlines are operational in India, a number that declined further in October after regional carrier Fly Big suspended its scheduled services.

Al Hind Air is promoted by the Kerala-based Alhind Group, while FlyExpress joins a growing list of aspirant airlines seeking to enter a market where scale, pricing power and network reach remain concentrated among a few dominant players.

The minister said encouraging new airlines has been a consistent policy objective, particularly in light of rapidly growing air travel demand. He highlighted initiatives such as the UDAN (Ude Desh ka Aam Naagrik) scheme, which focuses on boosting regional connectivity by enabling smaller carriers to operate on underserved routes.

Under UDAN, airlines including Star Air, IndiaOne Air and Fly91 have expanded services to smaller cities, helping integrate them into the national aviation network. The government believes significant growth potential remains in this segment.

According to the Directorate General of Civil Aviation (DGCA), India’s current scheduled domestic airlines include IndiGo, Air India, Air India Express, Alliance Air, Akasa Air, SpiceJet, Star Air, Fly91 and IndiaOne Air.

However, the push for increased competition comes against a backdrop of repeated airline failures. In recent years, carriers such as Jet Airways and Go First ceased operations due to mounting debt and operational challenges, highlighting the volatility and high-risk nature of India’s aviation sector despite rising demand.