IndiGo Shares Dip 2% as Govt Clears Two New Airlines for Takeoff

• IndiGo shares fell over 2% on December 24 after the government granted No Objection Certificates (NOCs) to two new airlines, Al Hind Air and FlyExpress.
• Union Aviation Minister Ram Mohan Naidu Kinjarapu announced the NOCs, following a previous one for Shankh Air, signaling increased competition.
• Al Hind Air, part of Kerala's Alhind Group, and Hyderabad-based FlyExpress are preparing to enter India's fast-growing aviation market.
• The government actively encourages new airlines, citing the success of schemes like UDAN and the need for more players after recent IndiGo operational issues.
• IndiGo currently holds over 60% market share, with its position being examined by the Competition Commission of India.

Why It Matters: New airline NOCs signal increased competition, causing IndiGo shares to drop and highlighting market shifts.