The Indian aviation sector is entering a fresh phase of competition. In late December 2025, the Ministry of Civil Aviation approved licences for three new domestic airlines: Al Hind Air, FlyExpress and Shankh Air. These approvals allow the airlines to move ahead with fleet planning, hiring, and route applications. While the announcements may appear routine, their timing makes them especially important for the future of India’s largest airline and for the overall balance of the market.
The clearances came just weeks after a major disruption in domestic air travel. In December 2025, IndiGo, which operates the largest share of India’s domestic flights, faced widespread operational issues. On one day alone, close to 1,600 flights were cancelled across the country. These cancellations occurred during a peak travel period, affecting thousands of passengers and drawing strong attention from regulators and policymakers.
The incident highlighted how dependent the market has become on a few large carriers. When one major airline struggles, the entire system feels the impact. Against this backdrop, the approval of three new airlines sends a clear signal that authorities want a broader and more balanced aviation ecosystem.
Al Hind Air has indicated plans to focus on domestic connectivity, with early communication suggesting a possible full-service or hybrid model. The airline has spoken about linking underserved cities, which aligns with the government’s push for regional air travel.
FlyExpress has been presented as a cost-focused airline. Reports suggest it may operate narrow-body aircraft and target point-to-point routes where demand exists but competition is limited. This model mirrors the early strategies used by several successful low-cost carriers in India.
Shankh Air is the least detailed of the three so far. While it has received the required licence, information about its fleet size, launch timeline, and business model remains limited. This is common at the early approval stage, as many airlines refine plans only after regulatory clearance.
Receiving a licence does not mean flights will begin immediately. Each airline must still secure an Air Operator Permit, finalise aircraft leases or purchases, recruit pilots and cabin crew, complete safety checks, and obtain airport slots. In India, this process usually takes several months and can stretch beyond a year.
As a result, passengers should not expect a sudden increase in flights in early 2026. Capacity will likely be added gradually, starting with a few routes before expanding further. The real impact of these airlines will be felt over the medium term rather than instantly.
Despite recent operational troubles, IndiGo remains the strongest player in the domestic market. It has the largest fleet, extensive airport slots, and a network that covers almost every major and secondary city. These strengths make it difficult for new airlines to challenge its dominance quickly.
However, the December cancellations have placed pressure on the airline to restore trust. Schedule stability, on-time performance, and customer communication have become critical areas of focus. Any prolonged weakness could give new entrants an opportunity to attract passengers looking for alternatives.
As new airlines begin operations, competition is expected to increase first on smaller and mid-sized routes. New players often avoid the busiest metro routes initially because of slot shortages and high costs. Instead, they target underserved city pairs where demand exists but supply is limited.
Over time, this could reduce fares on certain routes and push established airlines to improve service quality and efficiency. For IndiGo, this means refining schedules, managing costs carefully, and strengthening customer loyalty rather than relying only on scale.
The arrival of Al Hind Air, FlyExpress and Shankh Air points toward gradual market rebalancing rather than sudden disruption. Not all new airlines survive the early years, especially in a sector with high fuel costs, tight margins, and strict safety rules. Financial discipline and operational reliability will decide which of these new players can last.
For passengers, more airlines mean more choice and potentially better connectivity over the next two years. For IndiGo, the message is clear: scale alone is no longer enough. Stability, resilience, and consistent execution will shape its next phase in an increasingly competitive Indian aviation market.