Two new airlines set to start in India in 2026

New Airlines in India 2026: Government Clears Three Airlines After IndiGo Crisis Reshapes Aviation Market

India's aviation industry is at a critical turning point in December 2025. Following the catastrophic IndiGo operational crisis that led to approximately 4,500 flight cancellations, the Government of India has swiftly moved to address the dangerous concentration in the aviation market. On December 24, 2025, Union Civil Aviation Minister Ram Mohan Naidu announced that the Civil Aviation Ministry granted No-Objection Certificates (NOC) to three new airlines: Al Hind Air, FlyExpress, and Shankh Air. This historic decision signals a determined government effort to reshape India's aviation landscape and prevent future crises.

Key Development: The three airlines have received No-Objection Certificates (NOC), allowing them to begin operational setup. However, they still need to obtain Air Operator Certificates (AOC) before commencing commercial flight operations.

IndiGo Crisis: The Catalyst for Change

In mid-December 2025, IndiGo, India's largest airline with approximately 65% market share, faced a severe operational meltdown. The airline cancelled around 4,500 flights due to poor staff planning and technical issues, leaving tens of thousands of passengers stranded across Indian airports. This crisis exposed a critical vulnerability: India's aviation market was dangerously dependent on just two players—IndiGo and Air India Group, which together control approximately 90% of domestic passenger traffic.

The mass disruption highlighted what industry experts had warned about for years: a duopoly-driven market lacks resilience and competition. When one major player fails operationally, the entire system suffers. IndiGo's crisis directly catalyzed government action to diversify the airline market and build structural resilience into Indian aviation.

Three New Airlines Get Government Clearance

On December 24, 2025, India's Civil Aviation Ministry took decisive action to break IndiGo's market dominance. Union Civil Aviation Minister Ram Mohan Naidu announced the approval of No-Objection Certificates for three promising airline ventures. This represents the most significant expansion of India's airline ecosystem since Akasa Air's successful launch.

India's Aviation Market Structure 2025

IndiGo: 65% market share - Market leader facing operational challenges

Air India Group: 27% market share - Second largest carrier

Other Players: 8% market share - Including Akasa Air, SpiceJet

New Airlines: Three new NOC approvals in December 2025

Al Hind Air: Focusing on Southern India's Growth

About Al Hind Air

Al Hind Air has emerged as a strategic new entrant focused on southern India's aviation market. According to the official Al Hind Air website, the airline aims to begin operations in southern India with a fleet of ATR Turboprop aircraft, making it ideal for regional connectivity and underserved routes.

Current Status: The airline has received its No-Objection Certificate (NOC) and is currently in the process of obtaining its Air Operator Certificate (AOC) from India's Directorate General of Civil Aviation (DGCA).

Strategic Focus: Al Hind Air is targeting regional connectivity to tier-2 and tier-3 cities in southern India, areas that have been underserved by major carriers. This approach aligns with the government's Regional Connectivity Scheme (UDAN) and helps build aviation infrastructure in underrepresented regions.

FlyExpress: Coming Soon to Indian Skies

About FlyExpress

FlyExpress is another promising airline that has received its NOC approval in late December 2025. The airline's website displays a "coming soon" banner, signaling imminent launch preparations and operational setup.

Current Status: FlyExpress has obtained the initial regulatory approval (NOC) and is in the process of setting up its operations infrastructure and pursuing AOC certification.

Market Opportunity: As a new entrant, FlyExpress represents another opportunity to increase market competition, reduce passenger dependency on IndiGo, and offer alternative flight options across India's growing aviation market.

Shankh Air: Leading the New Generation

About Shankh Air

Shankh Air was the first among the three airlines to receive its No-Objection Certificate, demonstrating the government's confidence in its operational plans and business model. This airline joins the wave of new entrants committed to restructuring India's aviation landscape.

Current Status: Shankh Air has successfully obtained its NOC and is progressing toward AOC certification, positioning itself as an early mover in the diversification of India's airline market.

Strategic Importance: The early approval of Shankh Air signals the government's commitment to supporting qualified aviation entrepreneurs and building a more resilient, competitive market with multiple carriers.

NOC vs AOC: Understanding Regulatory Process

It's crucial to understand the difference between NOC and AOC in India's aviation regulatory framework. These are two distinct stages in the journey from aspiring airline to commercial operator.

No-Objection Certificate (NOC): This is the initial approval granted by India's Civil Aviation Ministry. It allows entrepreneurs to formally begin setting up their airline operations. However, the NOC does not permit commercial flight operations.

Air Operator Certificate (AOC): This is the more demanding certification issued by the Directorate General of Civil Aviation (DGCA). To obtain an AOC, airlines must demonstrate financial strength, acquire aircraft, hire trained crew members, establish safety systems, and complete regulatory proving flights. This process typically takes 12-24 months.

Current Status: All three airlines have NOCs but are working toward AOC certification. Commercial operations cannot begin until they obtain AOC from DGCA.

Why This Matters: Building Resilience

The approval of three new airlines addresses critical issues in India's aviation market:

• Reducing Duopoly Risk: IndiGo and Air India Group's combined 90% market share created dangerous concentration.
• Improving Competition: More airlines lead to better pricing and improved service quality.
• Building Redundancy: Multiple carriers prevent system collapse if one airline faces challenges.
• Expanding Routes: New airlines focus on underserved regional routes improving access across India.
• Creating Employment: New carriers will create thousands of aviation industry jobs.
• Demonstrating Government Commitment: Quick approvals show commitment to market-driven solutions.

Challenges Ahead for New Airlines

While government approval is encouraging, new airlines face significant challenges before reaching profitability:

• High Operating Costs: Fuel, airport charges, and maintenance expenses are substantial in India.
• Intense Competition: Established carriers have cost advantages and network scale.
• Obtaining Aircraft: Securing aircraft financing and delivery is time-consuming and expensive.
• Crew Training: Hiring and training qualified pilots and cabin crew requires significant investment.
• Brand Building: Establishing passenger trust takes time and marketing investment.
• Regulatory Compliance: Meeting DGCA standards requires substantial infrastructure investment.

Lessons from Other New Airlines: Akasa Air's Success

Akasa Air, which launched in 2022, provides an encouraging model for new airlines in India. Despite operating in a competitive market dominated by IndiGo and Air India, Akasa Air has successfully captured market share through quality service, modern aircraft, and competitive pricing. The airline's operational excellence and customer-centric approach demonstrate that new carriers can thrive with proper execution.

Akasa Air's success shows that there is substantial demand for alternatives to IndiGo, validating the government's decision to approve new airlines. The three new carriers can learn from Akasa Air's playbook of operational excellence, customer service focus, and efficient fleet management.

Government Policy Support for Regional Connectivity

The Indian government's Regional Connectivity Scheme (UDAN) provides substantial support for new airlines and regional routes. This scheme offers subsidies for flights to tier-2 and tier-3 cities, making regional aviation economically viable for new operators. Al Hind Air and other regional-focused airlines can leverage UDAN benefits to establish operations in underserved areas while developing sustainable business models.

Government support through UDAN, tax incentives, and policy reforms creates a favorable environment for aviation entrepreneurs, directly supporting the growth of these new carriers.

Timeline: What Comes Next

For Al Hind Air, FlyExpress, and Shankh Air, the path forward involves several critical milestones:

• Immediate (Dec 2025 - Jan 2026): Complete operational setup and finalize AOC applications
• Short-term (Feb - Jun 2026): Obtain AOC from DGCA, acquire aircraft, hire crew
• Medium-term (Jul - Dec 2026): Conduct proving flights, training, and pre-launch preparations
• Launch Phase (2026-2027): Commence commercial operations on initial routes
• Expansion (2027 onwards): Gradually expand fleet size and network coverage

Conclusion: A New Era for Indian Aviation

The IndiGo crisis of December 2025 has sparked a transformation in India's aviation industry. Government approval of three new airlines signals a fundamental shift toward market diversification and competitive dynamics. Rather than representing collapse, this moment reflects market maturation and recognition that competition strengthens the entire ecosystem.

Al Hind Air, FlyExpress, and Shankh Air bring fresh competition, innovation, and capacity to Indian aviation. While challenges remain substantial, the government's swift regulatory action and policy support provide a solid foundation for these ventures. Success will depend on operational excellence, customer focus, and financial discipline—lessons Akasa Air has already demonstrated are achievable.

For Indian Travelers: The approval of new airlines promises more flight options, competitive pricing, improved service quality, and greater route accessibility. The IndiGo crisis, while disruptive, has ultimately catalyzed positive structural changes in India's aviation market.

Stay tuned to NewKidaa Blog for exclusive updates on these new airlines, their launch dates, and impact on India's aviation industry. Follow us for the latest aviation news, airline developments, and industry analysis.