Centre paves way for three new airlines following IndiGo flight disruptions

New Delhi: The Union government has granted initial approval for three new airlines to commence operations, a strategic move aimed at infusing competition into the domestic aviation market following recent widespread disruptions in IndiGo services.

Union Civil Aviation Minister Ram Mohan Naidu confirmed via a post on X that the ministry has issued a "no-objection certificate" (NOC) to three regional carriers: Shankh Air, FlyExpress, and Al Hind Air. The Minister emphasised that the government is keen to break the current market concentration and encourage new players.

Of significant interest to the southern region is Al Hind Air, promoted by the Kerala-based Alhind Group. The airline intends to launch operations in South India utilising a fleet of ATR Turboprop aircraft and is currently in the process of obtaining its Air Operator Certificate. Meanwhile, FlyExpress has indicated on its website that its launch is imminent, while Shankh Air is expected to begin commercial operations next year.

The push for new entrants comes as India’s domestic market effectively operates as a duopoly. IndiGo commands a massive 65 per cent market share, followed by Air India at 27 per cent, leaving smaller players like SpiceJet and Akasa with the remaining minority share.

The vulnerability of this market structure was exposed earlier this month when IndiGo was forced to cancel over 4,000 flights across major hubs including Delhi, Mumbai, Hyderabad, and Bengaluru. The crisis left thousands of passengers stranded and schedules in disarray. The low-cost carrier faced severe crew shortages while attempting to implement the second phase of the new flight duty time limitations (FDTL) norms.

Addressing Parliament regarding the issue, Mr Naidu stated that the government has initiated an inquiry into the mass cancellations. He attributed the chaos to IndiGo's "internal crisis" following the enforcement of new passenger safety norms, which required airlines to recruit more pilots to manage fatigue. He warned that strict action would be taken against the operator to set a precedent.

To manage the immediate fallout, the Directorate General of Civil Aviation (DGCA) has temporarily relaxed the new norms until February to allow the beleaguered airline to stabilise operations. However, the government maintains that the Indian market has the potential to support five major airlines, a stance aimed at countering Opposition concerns regarding the sector's monopolistic tendencies.

(Inputs from IANS)