UAE-India Airfares Could Fall as Al Hind Air, FlyExpress, and Shankh Air Launch New Routes—Competition Intensifies on Gulf Connections

Published on December 28, 2025

By: Paramita Sarkar

The Indian government has made major strides toward improving the UAE-India aviation corridor, with the entry of three new airlines—Al Hind Air, FlyExpress, and Shankh Air—set to shake up the market in 2025. These airlines are expected to challenge the dominance of established players such as IndiGo and the Air India Group, which currently control over 90% of the market. The newly approved airlines aim to improve air travel options, lower airfares, and offer competitive routes between India and UAE, two countries with a historically high volume of travel.

According to official updates from the Ministry of Civil Aviation (MoCA), the Directorate General of Civil Aviation (DGCA), and airline statements, this move represents a bold step in India’s efforts to diversify its aviation sector and open up new opportunities for travelers. The UAE-India corridor is one of the most heavily trafficked in the world, and these changes could make a significant impact on airfares and competition.

What Are the New Airline Approvals?

As of December 2025, the Indian Ministry of Civil Aviation has granted No Objection Certificates (NOCs) to three new carriers:

1. Al Hind Air

Promoted by the Kerala-based Alhind Group, Al Hind Air initially plans to serve regional domestic routes within Southern India, using ATR 72-600 aircraft. However, its long-term strategy includes establishing direct connections between Kerala’s airports and Gulf hubs, primarily targeting the expatriate community. This move comes at a time when Kerala has become a key hub for migrant workers from the Gulf, and the demand for affordable flights is expected to increase.

2. FlyExpress

FlyExpress, which received its NOC in late December 2025, will begin by servicing underserved domestic routes. Backed by logistics investors, the airline is also expected to expand internationally after completing its domestic operations. FlyExpress’s entry into the market will increase competition and reduce the current duopoly on international routes, particularly to the UAE.

3. Shankh Air

Based in Uttar Pradesh, Shankh Air is scheduled to begin operations in 2026. The airline will be the primary carrier for the new Noida International Airport (Jewar), which will further open up options for UAE-India connectivity. The airport’s proximity to Delhi makes it a strategic entry point for international travelers, with a focus on affordable and efficient travel.

How Will These New Airlines Affect Airfares and Routes?

One of the main concerns for travelers has been the high cost of flights on the UAE-India route, especially with IndiGo and Air India dominating the market. However, the entry of new players like Al Hind Air, FlyExpress, and Shankh Air is expected to introduce healthy competition and possibly lower airfares over the next few years.

Fare Ceiling Regulation

In response to massive disruptions and flight cancellations at IndiGo, the Ministry of Civil Aviation introduced temporary fare caps on critical routes. This is expected to curb predatory pricing and ensure more reasonable ticket prices for passengers. While UAE-India airfares may not fall dramatically immediately, these changes are expected to lower price volatility heading into mid-2026.

Slot Redistribution

To further promote competition, the Ministry of Civil Aviation announced that 110 slots previously held by dominant carriers will be redistributed to smaller, newer airlines. This slot redistribution will create more opportunities for the new airlines to expand routes, particularly to high-demand destinations like Dubai, Abu Dhabi, and Sharjah, improving access to the UAE for travelers across India.

Expansion of Low-Cost Carriers on UAE-India Routes

While new airlines are still in their early stages of certification, existing low-cost carriers have already expanded their services. Air India Express, a subsidiary of Air India, has launched new direct flights from Pune to Abu Dhabi and Delhi to Abu Dhabi in December 2025. This expansion adds more low-cost options for travelers in India’s smaller cities who are looking to fly to the UAE.

In addition, the Navi Mumbai International Airport (NMIA) officially opened for commercial flights on December 25, 2025, and airlines like Air India Express and Akasa Air have already been granted slots to fly Gulf-bound routes starting in Q1 2026. This development will lower fares for passengers in the Mumbai Metropolitan Region, offering them an alternative to the congested Mumbai (BOM) airport.

What Are the Current Issues with the UAE-India Corridor?

Despite the new airlines and expanding low-cost options, the government has not yet finalized an “Open Skies” agreement with the UAE. As confirmed by the Ministry of Civil Aviation in an August 2025 Rajya Sabha (Parliament) response, the Comprehensive Economic Partnership Agreement (CEPA) with the UAE has not yet led to a significant increase in available seats for UAE-India flights. The current regulations require reciprocity, meaning that both sides must agree on the increase in flight capacity. Until a new bilateral seat agreement is signed, airfares will primarily be influenced by the redistribution of slots and the entry of new carriers rather than a massive increase in the total number of available seats.

Looking Ahead: What Can Travelers Expect?

While it may take time for Al Hind Air, FlyExpress, and Shankh Air to complete their domestic routes and qualify for international flights under the revised 0/20 rule, travelers can look forward to lower airfares and more travel options by mid-2026. As these airlines begin operations, the competition between them and established players like IndiGo and Air India should lead to reduced ticket prices, more accessible routes, and increased market efficiency.

Conclusion: A More Competitive, Affordable UAE-India Travel Market

With Al Hind Air, FlyExpress, and Shankh Air entering the UAE-India aviation corridor, the landscape of air travel between the two countries is poised for significant transformation. Though airfares may not immediately drop, the future of UAE-India travel looks promising, with more choices for travelers, competitive pricing, and a focus on affordable, efficient travel. These changes, coupled with the slot redistribution and new low-cost carrier expansions, will lay the foundation for a more dynamic, affordable, and sustainable air travel market. The next few years will undoubtedly shape the future of UAE-India travel, with 2026 expected to see a significant shift toward a more open and competitive sector.