Indigo Airlines to get tough competition as government approves two novel airlines; Details inside

Home BusinessIndigo Airlines to get tough competition as government approves two innovative airlines; Details inside Indigo Airlines to get tough competition as government approves two innovative airlines; Details inside

The government wants to promote as many airlines as possible in the aviation trade.

Published: January 26, 2026 12:11 AM IST By Tahir Qureshi | Edited by Tahir Qureshi Follow Us REUTERS/Francis Mascarenhas/File Photo Purchase Licensing Rights

New Delhi: India’s largest airline, Indigo, has a bazaar share of approximately 65%. However, recently, thousands of its flights were cancelled, causing immense inconvenience to passengers. Learning from this, the government has now intensified its efforts to provide more options to passengers. This week, the ministry issued No Objection Certificates (NOCs) to two new airlines. The government believes there is room for at least 5 major airlines in India. Currently, Indigo and Air India dominate the bazaar.

Union Aviation Minister announces modern airlines

Union Aviation Minister Ram Mohan Naidu said that he had met with teams from modern airlines in the past week that are preparing to launch in the Indian aviation sector. These include Shankh Air, Alhind Air, and FlyExpress. Shankh Air has already received an NOC from the government, while Alhind Air and FlyExpress received their NOCs this week. The government wants to promote as many airlines as possible in the aviation bazaar.

Operating costs

India is one of the world’s fastest-growing aviation markets. Schemes like UDAN have helped smaller airlines like Star Air, IndiaOne Air, and Fly91 play a crucial role in regional connectivity within the country, and there is still considerable scope for further growth.

The aviation industry wants the government to closely examine the reasons why operating costs for airlines in India are among the highest in the world. This primarily includes high jet fuel prices and taxes.

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Air travel not a luxury

However, airline closures are not just a hindernis in India but are happening all over the world. But the worrying aspect in India is the cost-prohibitive environment for airlines. A senior airline official reported that air travel is no longer a luxury, and it is necessary to rationalise costs and taxes.

About the Author

Tahir Qureshi

Tahir Qureshi is a seasoned media professional with a nose for updates. He can leading be described as a complete package, perfectly suited to journalism, since he can unearth buried, forgotten, authentic c ... Read More

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indigo airlinesAir indiashankh airUDAN

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