DGCA issues NOCs to Akasa Air (expansion), Fly91 (regional), and a new low-cost consortium.
Move comes as IndiGo battles fallout from pilot rest rule crisis, mass cancellations, and regulatory pressure.
Expected to boost competition, regional connectivity, and capacity in 2026–27 as new carriers launch.
India Approves Three New Airlines Amid Ongoing IndiGo Operational Crisis
DGCA grants initial approvals to three new carriers as IndiGo struggles to recover from mass cancellations and pilot rest rule disruptions, raising hopes for increased competition and capacity
Summary
The Directorate General of Civil Aviation (DGCA) on December 24, 2025, granted initial approvals to three new airline applicants, paving the way for fresh entrants into India's domestic aviation market at a time when flag carrier IndiGo continues to grapple with severe operational disruptions. The three entities — Akasa Air (expansion phase), Fly91 (regional focus), and a new low-cost carrier backed by a consortium of investors — received No Objection Certificates (NOCs) to commence the process of obtaining Air Operator Certificates (AOCs).
The approvals come amid IndiGo's ongoing crisis triggered by the implementation of stricter pilot rest norms, which led to acute crew shortages, grounding of hundreds of flights daily, and over 2,500 cancellations in the first three weeks of December alone. Even after a partial recovery with over 95% network restoration on December 6–7, the airline continues to face passenger backlash, government-mandated refunds, fare caps, and scrutiny from the Civil Aviation Ministry.
Industry experts view the timing as strategic, with the DGCA and Ministry aiming to encourage competition and additional capacity to ease pressure on the dominant player (IndiGo holds 62% market share). The new approvals are expected to bring in regional connectivity, especially in tier-2 and tier-3 cities, and potentially lower fares once operations begin in 2026–27.
Akasa Air is already operating a small fleet and is seeking expansion to international and more domestic routes. Fly91 is positioned as a regional carrier focused on the Northeast and smaller airports, with plans for ATR-type aircraft. The third entity is an unnamed consortium backed by private equity and aviation entrepreneurs, planning to operate as a full-service low-cost carrier.
Civil Aviation Minister Ram Mohan Naidu welcomed the development, stating that more players mean better services, more choices, and stronger competition, all in the interest of passengers and the economy.
Meanwhile, IndiGo has assured full normalcy by mid-January 2026 and is recruiting additional pilots and crew to meet the new rest requirements. Rival airlines like Air India Express and SpiceJet have already added flights to absorb displaced passengers
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