India’s civil aviation sector is set for renewed momentum as the government clears new airlines to begin operations, aiming to strengthen competition and regional connectivity. Air and FlyExpress have received no objection certificates from the Ministry of Civil Aviation, while Uttar Pradesh–based Shankh Air is preparing to launch flights in 2026. The move reflects the government’s intent to deepen capacity in one of the world’s fastest-growing aviation markets.
Union Civil Aviation Minister Kinjarapu Ram Mohan Naidu said the Ministry continues to encourage the entry of new airlines to expand choices for passengers. He highlighted that schemes like UDAN have already enabled smaller carriers such as Star Air, India One Air and Fly91 to play a meaningful role in improving air connectivity, particularly to underserved and regional destinations.
The timing of these approvals is significant, coming soon after IndiGo faced a major operational crisis in December 2025. The airline cancelled more than 5,000 flights in a single week, disrupting travel for thousands of passengers nationwide. On December 5 alone, around 1,600 flights were grounded, exposing vulnerabilities in India’s high-utilisation airline models.
The disruption was largely attributed to the implementation of new Flight Duty Time Limitation (FDTL) rules, designed to ensure pilots receive adequate rest. The clash between safety regulations and aggressive scheduling underscored the need for operational resilience as air traffic continues to rise rapidly across the country.
Currently, IndiGo and the Air India Group together command over 90 % of India’s aviation market. While consolidation has brought stability, it has also reduced competition. Several airlines, including Jet Airways and Go First, exited the market over the past decade due to mounting debt and operational challenges.
By encouraging new entrants, the government aims to balance growth with competition and resilience. The entry of Air, FlyExpress and Shankh Air could help diversify capacity, strengthen regional networks, and reduce overdependence on a few dominant players, supporting sustainable long-term growth in Indian aviation.
