New Delhi: India has granted initial clearance to two airlines to begin operations, weeks after mass cancellations by the country's largest airline, IndiGo, brought into focus the lack of competition in the world's fastest-growing aviation market.

The civil aviation ministry granted a "no-objection certificate" to regional airline alHind Air and FlyExpress this week, Minister Ram Mohan Naidu said in a post on X on late Tuesday, adding that the government is working to encourage more competition in the domestic market.

The risks associated with IndiGo's dominance were highlighted earlier this month when about 4,500 flights were cancelled because of poor staff planning. As a result, tens of thousands of passengers were stranded at airports all over India, and some analysts called for the government to incentivise more companies to operate.

IndiGo has a market share of about 65 per cent, followed by rival Air India Group at about 27 per cent. Smaller carriers make up for the rest.

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According to its website, alHind aims to begin operations in southern India with a fleet of ATR Turboprop aircraft. It is in the process of obtaining an Air Operator Certificate. A banner on FlyExpress' website also said "coming soon."

India has granted permits to six air operators since 2020 to begin operations, including some regional carriers, the government told lawmakers in July.

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