The Ministry of Civil Aviation has granted no-objection certificates to two new airlines, Al Hind Air and FlyExpress, aiming to increase competition in India’s aviation sector after IndiGo’s major operational disruption in December.

The move follows concerns over the industry’s duopolistic structure, exposed when IndiGo cancelled nearly 4,500 flights over 10 days, stranding about 11 lakh passengers due to issues linked to new DGCA crew-duty norms.

Civil Aviation Minister Ram Mohan Naidu said encouraging new entrants is a priority in one of the world’s fastest-growing aviation markets, supported by schemes like UDAN to boost regional connectivity.

However, industry experts warn that high operating costs, fuel taxes, and thin capital buffers remain major challenges, meaning new airline approvals alone may not ensure long-term sustainability.