Digital Team
India Aviation Reset and the Entry of Al-Hind Air, Fly Express and Shankh Air, Centre seeks to break the IndiGo–Air India duopoly and boost competition in India`s rapidly developing aviation market, with the arrival of NOCs on Al-Hind Air and Fly Express.
India Aviation Reset After IndiGo Crisis
India aviation reset is taking shape after the IndiGo crisis, as the government clears two new airlines—Al-Hind Air and Fly Express, Shankh Air —to begin operations next year. The Ministry of Civil Aviation has issued No Objection Certificates (NOCs), marking the first regulatory step to boost competition in a sector dominated by IndiGo and Air India.
The NOCs for both carriers have been issued by the Ministry of Civil Aviation, the country’s first regulatory step to stimulate competition in an industry that is controlled by IndiGo and Air India.
The action follows an unexpected cancellation of more than 4,000 flights from IndiGo in a matter of days, revealing a structural vulnerability in India’s highly concentrated domestic aviation market.
India Aviation Reset: Govt Push to Reshape Duopoly
(IndiGo dominates India’s domestic aviation sector, with >60% market share and Air India with about 30%.)
Collectively, the two airlines represent nearly 90% of domestic passenger traffic, but there is little scope for competition and duplication.
That concentration means a disruption, be it crew shortages, technical hiccups or weather-related challenges, can ripple out across the entire network hitting millions of passengers at once.
And, acknowledging the risks, the government signed off on a new policy pivot in an effort to break the duopoly and fortify the industry resilience, an aspect of the continuous India aviation reset.
Al-Hind Air, Fly Express Shankh Air Receive NOCs: What It Means
The issuance of NOCs to Al-Hind Air and Fly Express Shankh Air are essential but not definitive approval for commercial flight.
Air transport authorities explained that an NOC merely demonstrates that the airline’s ownership organization, financial plan and preliminary proposal meet national regulations.
The carriers will have to show full operational readiness before they receive the Air Operator Certificate (AOC) from the Directorate General of Civil Aviation (DGCA).
What airlines must prove next:
• Availability of aircraft.
• Pilots and cabin crew trained.
• Maintenance and engineering capability.
• Ground handling arrangements.
• Audits of safety and proving flights.
The DGCA certification can last for months to more than a year, depending on compliance and readiness.
The IndiGo Crisis Prompted Policy Re-evaluation
And the timing of those approvals matters.
Just a few weeks earlier, IndiGo’s crew shortages had forced mass flight cancellations, leaving passengers stranded in some of the country’s biggest airports.
While recent cancellations because of the thick fog in North India indicate seasonal difficulties, the bigger problem, policy-makers say, is one of structure.
“India needs a minimum of five major airlines that can keep pace with growing passenger demand and have real choice,” Civil Aviation Minister K. Rammohan Naidu told Parliament at the peak of the IndiGo crunch.
The statement captures government sentiment that market depth — not scale — is essential to the health of aviation.
India’s Aviation Growth Outlook
India is projected to become the world’s third largest aviation market in the coming years based on the following factors:
• Growth in middle-class incomes.
• Regional connectivity under UDAN.
• Expanding airport infrastructure.
• Increase in business and leisure travel opportunities.
India aviation reset seeks to build capacity at a capacity point upstream of this demand curve rather than in response to bottlenecks.
New Airline Challenges Ahead
For all its policy support, history provides cautionary lessons.
Recent airline failures:
• Jet Airways folded after a string of major financial struggles.
• Go First shut down due to engine and liquidity problems.
• Smaller entrants, such as AASA, could not attract traction.
These failures reinforce that competition is not enough.
New airlines must navigate:
• High costs of aviation turbine fuel (ATF).
• Limited pilot availability.
• Metro airport infrastructure bottlenecks.
• Thin profit margins.
New carriers might not survive without sustained regulatory and financial backing, industry experts say.
The Importance Of The India Aviation Reset
Beyond consumer choice, the push for new airlines is about systemic resilience.
In a concentrated market:
• A single airline disrupting the whole ecosystem.
• Disruptions cause fares to skyrocket as soon as they happen.
• Passenger confidence wears away.
A diversified airline ecosystem spreads risk, offers increased service reliability and better positions India for future demand shocks.
What Comes Next
The approvals of Al-Hind Air and Fly Express herald an effective India aviation reset, however its success comes down to execution, operational clearance and market conditions.
As India gears up for an upsurge in air travel, the challenge isn’t primarily to open the door to new airlines — but to keep them afloat in a volatile industry.
If performed well, this reset could re-set competition, resilience and passenger experience in the Indian skies.
Frequently Asked Questions
Q1: What is the India aviation reset?
A: It refers to the government’s push to increase airline competition after the IndiGo crisis exposed risks of market concentration.
Q2: Have Al-Hind Air and Fly Express started flying?
A: No. They have only received NOCs and must still secure DGCA approval.
Q3: Why does India need more airlines?
A: To reduce dependency on a duopoly and manage rapidly growing passenger demand.
Q4: How long does DGCA approval take?
A: The Air Operator Certificate process can take several months to over a year.
Q5: Will airfares reduce with more airlines?
A: Increased competition can stabilise fares, but costs like fuel and infrastructure also play a role.
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