India Boosts Aviation Competition, Approves Two New Airlines After IndiGo Crisis

• India approved Al Hind Air and FlyExpress, granting them No Objection Certificates (NOCs), following Shankh Air's earlier approval, to increase competition in its aviation market.
• The move comes after the recent IndiGo operational crisis exposed the risks of a duopoly, with IndiGo and Air India Group dominating nearly 90% of domestic passenger traffic.
• Union Civil Aviation Minister Ram Mohan Naidu confirmed the approvals, emphasizing the government's priority to encourage new entrants and expand capacity.
• While an NOC allows setup, airlines still need an Air Operator Certificate (AOC) from DGCA, a more demanding step involving financial strength, aircraft acquisition, and safety systems.
• Industry experts caution about high costs and thin margins, but the government aims to address duopoly risk and build greater resilience into India's aviation system.

Why It Matters: India approves new airlines to counter duopoly risks and enhance competition after the IndiGo crisis.