Govt grants NOCs to Shankh Air, Al Hind Air & FlyExpress amid duopoly concerns; what we know so far

The Ministry of Civil Aviation has issued no objection certificate (NOC) to three proposed airlines as the government seeks to encourage competition in one of the world’s fastest-growing aviation markets amid concerns over a growing duopoly.

Union Civil Aviation Minister Ram Mohan Naidu Kinjarapu on Tuesday said he met teams from three aspiring airlines over the past week.

“While Shankh Air has already got the NOC from the Ministry, Al Hind Air and FlyExpress have received their NOCs this week,” the minister posted on X.

Shankh Air has said on its website that the airline plans to operate as a full-service airline based out of Noida International Airport.

Al Hind Air, backed by the Alhind Group, plans to launch as a regional commuter airline with a fleet of ATR 72-600 turboprop aircraft, focusing initially on domestic routes in southern India, according to company information.

“It has been endeavour of the ministry to encourage more airlines in Indian Aviation which is amongst the fastest growing aviation markets in the world owing to the policies of the government of Hon’ble PM Shri @narendramodi ji,” Naidu said.

The approvals come as India’s aviation sector faces renewed scrutiny over market concentration after IndiGo, which carries about 65% of domestic passengers, cancelled thousands of flights in early December, triggering airport disruptions and a sharp spike in fares.

India’s airline industry has undergone repeated consolidation over the past decade following the collapse of carriers such as Jet Airways, Kingfisher Airlines and GoFirst, and the restructuring of Tata Group’s aviation businesses.

The Tata-led consolidation resulted in the merger of AirAsia India into Air India Express and Vistara into Air India, leaving IndiGo and the Air India group together controlling more than 90% of the domestic market.

IndiGo’s recent operational crisis was linked to a severe pilot shortage after it failed to hire enough crew to meet new government rules. The aviation regulator Directorate General of Civil Aviation initially granted temporary exemptions before ordering the airline to cut 5% of planned flights, a reduction later doubled by the government.

Air India has also faced heightened regulatory scrutiny following a crash involving a Boeing 787 Dreamliner in Ahmedabad in June, after which the carrier suspended 83 flights for six weeks to conduct government-mandated safety checks.