The Central Government has taken an important step towards increasing competition in India’s aviation sector and providing more choices to passengers. The government has given operational approval to two new aviation companies, AI Hindi Air and FlyExpress, which are preparing to take off. On behalf of the Civil Aviation Ministry, these two companies No Objection Certificate (NOC) Has been issued.

Efforts to reduce burden in aviation sector

This decision has been taken at a time when competition in the domestic aviation market was limited due to the IndiGo crisis and increasing operational pressure on some other airlines. The number of air passengers has increased rapidly in the last few years, but high costs, huge debt and operational challenges remained major obstacles to the entry of new players. In such a situation, this step of the government is being seen as an attempt to reduce the excessive dominance of existing companies on the domestic aviation sector and bring balance in the market.

Apart from this, Shankh Air of Uttar Pradesh has already received NOC and it is expected that it will start its commercial flights from 2026. Currently, only nine airlines are active in India’s domestic aviation sector, while this number further declined after Fly Big discontinued its services in October. At present the Indian aviation market is dominated by IndiGo and Air India groups.

Competition will increase in the sky

IndiGo alone controls about 65 percent of the domestic market, while together with Air India and Air India Express, this control reaches about 90 percent. The entry of new players will not only increase competition but is also expected to balance ticket prices, improve service quality and bring better options for passengers. Overall, the entry of new companies like AI Hindi Air, FlyExpress and Shankh Air is likely to intensify competition in the Indian skies in the coming years and give a new impetus to the aviation industry.

Due to the operational crisis of the country’s largest airline IndiGo, passengers are suffering due to flight cancellations and delays. Meanwhile, the government data presented in the Lok Sabha on Thursday (December 11, 2025) presented a worrying picture of the Indian aviation sector. Despite the continuously increasing demand, this industry is currently immersed in massive losses.

Only Indigo is profitable
According to the written reply given by the Civil Aviation Ministry, IndiGo was the only major airline to make profit in the financial year 2024-25. The company registered a profit of Rs 7,253 crore during this period. In contrast, government airline Air India suffered a loss of Rs 3,976 crore, Air India Express Rs 5,832 crore, Akasa Air Rs 1,986 crore and Alliance Air suffered a loss of Rs 691 crore. SpiceJet also remained in loss and recorded a loss of Rs 56 crore. The small-scale operator Star Air was an exception, earning a modest profit of Rs 68 crore.

old series of losses
This economic crisis is not new. In the financial year 2022-23, Indian Airlines had incurred a collective loss of more than Rs 18,600 crore. Air India alone lost Rs 11,387 crore, while IndiGo also suffered a loss of Rs 316 crore. Although Indigo made a strong comeback in the next financial year 2023-24 and registered a profit of Rs 8,167 crore, other companies could not get out of the quagmire of losses. Air India suffered a loss of Rs 4,444 crore and SpiceJet suffered a loss of Rs 404 crore.

Demand increased, but debt and cost increased problems
This is the situation when the number of people flying in the country is continuously increasing. In the financial year 2024-25, the number of domestic passengers increased by 7.7% to 16.55 crore. Despite this, airlines are stuck in a cycle of heavy debt, high operating costs and low margins. For this reason, new players are afraid to enter the market, while the demand is continuously touching record levels.

Passengers troubled by Indigo crisis, lack of options increases difficulties
The recent operational crisis of IndiGo, which has about 65% domestic market share, has shaken the entire system. Thousands of flights had to be canceled due to severe crew shortage and new duty-time regulations. Competing airlines are already facing financial crisis, hence passengers are left with very limited options. As a result, crowding at airports is increasing, fares are skyrocketing and passenger dissatisfaction is also increasing.