There is a good news for the passengers in the Indian aviation sector. The Government of India has issued No Objection Certificates (NOC) to two new airlines—Alhind Air and FlyExpress. This step is considered an important effort towards increasing competition in the domestic aviation market and providing better options to passengers. This approval assumes great significance amid the uproar created by the cancellation of about 4500 flights by the country’s largest airline IndiGo in recent days. IndiGo currently commands 65% of the Indian market, which had given rise to monopoly concerns. This new initiative has given hope to not only domestic travelers but also people traveling to UAE and Gulf countries for cheaper fares in the future.
Challenge to IndiGo’s monopoly and hopes of affordable air travel for travelers in South India
This approval given by the Aviation Ministry is a direct attempt to bring balance in the market. After IndiGo, Air India has about 27% market share, which means that only two big companies are controlling the entire sector. Thousands of passengers had to face problems due to the rules and crisis related to pilots in IndiGo. Now with the arrival of new companies, competition on regional routes will increase. This can be a big relief especially for passengers going to UAE from South India (Kerala and Tamil Nadu), because currently only limited airlines operate on these routes. The entry of new airlines will increase the number of seats and reduce pressure on fares, although its real impact will be visible only after operations start by 2026.
Big preparations by Kerala’s Alhind Group, plans to make Kochi a hub and fly to Gulf countries
Among these two new airlines, Alhind Air’s plans are quite clear and ambitious. It is a Kerala-based Alhind Group company, which will make its debut with ATR-72 turboprop aircraft. The main focus of the company will initially be on connecting the cities of South India and its operational center (hub) will be Kochi. Alhind Air is also eyeing international flights in the future, with plans to make the UAE its first international destination. Whereas, the other company Flyexpress is a startup airline. Although its detailed plans are not yet public, it will also focus on regional flights. It is noteworthy that getting NOC is the first step, after which both the companies will have to complete the process of Air Operator Certificate (AOC) to start flights.
Udaan scheme is boosting regional connectivity, but the economic challenges facing new companies are also no less.
Six new airlines have been approved since 2020 under the government’s ‘UDAN’ scheme, which aims to strengthen connectivity in tier-2 and tier-3 cities. However, the path in the aviation sector is not so easy. The biggest challenge before new companies is to raise capital and prepare a fleet of aircraft. Alhind Air has also faced initial hiccups, where due to staff uncertainty, there have been reports of sending 120 employees on leave without pay. In such a situation, these new airlines will have to keep their financial condition and management very strong to compete with established companies like IndiGo and Air India.
