India Clears 3 New Airlines to Boost Domestic Aviation

India clears Shankh Air, Al Hind Air, and FlyExpress with NOCs to boost regional connectivity, reduce reliance on major carriers, and expand domestic aviation opportunities for B2B travel agents.

Why This Matters for India’s Aviation Market

Currently, more than 90% of India’s domestic air traffic is controlled by two major airline groups, with a single low-cost carrier accounting for over 65% of the market.
Recent operational disruptions highlighted the risks of such concentration.

By clearing new airlines, the government is actively:

• Encouraging competition and fare stability

• Improving network resilience

• Supporting regional connectivity and underserved routes

For B2B travel professionals, this means more inventory, better routing options, and reduced dependency on limited suppliers.

Shankh Air: Focus on North India & Noida Hub

Based in Uttar Pradesh, Shankh Air plans to operate from the upcoming Noida International Airport once it becomes operational.

The airline’s initial network is expected to include:

• Lucknow

• Varanasi

• Gorakhpur

• Major metro hubs like Delhi, Mumbai, and Bengaluru

Its launch timeline is linked to the inauguration of the Noida airport, positioning it as a strategic hub-based carrier for North India.

Al Hind Air: Regional Commuter Strategy

Al Hind Air is promoted by the Kerala-based AlHind Group, already active in travel and tour operations.
The airline plans to begin operations as a regional commuter carrier with a fleet of ATR 72-600 aircraft, ideal for short-haul and low-density routes.

This model aligns closely with the government-backed UDAN scheme, making Al Hind Air particularly relevant for agents serving regional and pilgrimage traffic.

FlyExpress: Tier-2 & Tier-3 City Connector

The third entrant, FlyExpress, is backed by promoters with experience in logistics, courier, and cargo operations.
Still in its pre-operational phase, the airline is expected to focus on:

• Tier-2 and Tier-3 city connectivity

• High-frequency, short-haul routes

• Supporting emerging regional demand

For consolidators and corporate planners, this could unlock new city pairs and non-stop regional options.

A Gradual but Strategic Expansion

Since 2020, India has approved six new air operators, even as the total number of scheduled domestic airlines has declined due to exits by smaller regional players.
The addition of these three carriers reflects a policy-driven push for long-term stability, rather than rapid, unsustainable expansion.

As the world’s fastest-growing aviation market, India’s focus is now shifting from scale alone to diversification and resilience.

What B2B Travel Agents Should Watch Closely

For travel agents, airline consolidators, and corporate travel managers, these developments signal:

• New fare structures and contract opportunities

• Improved access to regional and secondary markets

• Reduced risk from over-reliance on limited carriers

• Potential growth in fixed departures and group fares on new routes

Early engagement with emerging airlines often leads to better commercial terms and preferred inventory access.

Key Takeaway for the Travel Trade

India’s approval of Shankh Air, Al Hind Air, and FlyExpress marks a clear intent to rebalance the aviation ecosystem.
While operations will roll out gradually, the long-term impact could be significant—especially for B2B players focused on regional growth, domestic tourism, and corporate travel efficiency.

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