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India
This Week in AsiaEconomics

Duopoly of Air India, IndiGo to face competition from 2 new airlines

The approval for Al Hind Air and FlyExpress to operate in India comes amid mounting calls to challenge the dominance of Air India and IndiGo

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Aircrafts queue up on the tarmac before taking off at Mumbai airport. Photo: AFP
Biman Mukherji
India’s aviation sector is poised to become more competitive after authorities granted initial approval to two new airlines to start operations in the country, in a move that will further challenge the duopoly of IndiGo and Air India.

The expansion comes as the sector was rattled by a series of setbacks this year, including IndiGo’s massive flight cancellations earlier this month and the crash of an Air India plane in Ahmedabad in June.

On Tuesday, Civil Aviation Minister Kinjarapu Ram Mohan Naidu said in a social media post that his ministry had issued a “no-objection certificate” to Al Hind Air and FlyExpress this week in a bid to encourage ‍more competition in the domestic market.

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According to Al Hind’s website, the airline plans to begin operations in southern India with a fleet ‌of ATR Turboprop aircraft and is in the process of obtaining an air operator certificate.

FlyExpress did not give any details about its launch, with a banner on its website indicating “coming soon”.

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The entry of the two new airlines is expected to pressure IndiGo and Air India to raise their competitiveness after several major setbacks.

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