After witnessing disruptions caused by a duopoly in Indian aviation earlier this month, the Ministry of Civil Aviation is taking steps to increase options for flyers. This week, the ministry issued no objection certificates (NOCs) to two proposed airlines, signaling a push to encourage more players in the market.
New Airlines Take Flight
Union Aviation Minister Ram Mohan Naidu said on X that in the past week, ministry teams engaged with several aspiring airlines, including Shankh Air, Al Hind Air, and FlyExpress. Shankh Air has already received its NOC, while Al Hind Air and FlyExpress were granted theirs this week.
“The ministry has always aimed to promote more airlines in India, which is among the fastest-growing aviation markets globally,” Naidu said. “Schemes like UDAN have allowed smaller carriers such as Star Air, India One Air, and Fly91 to play an important role in regional connectivity, and there is still considerable scope for growth.”
Industry Concerns Over High Operating Costs
Despite the growth potential, industry experts point to structural challenges that make running airlines in India difficult. High operating costs, including jet fuel prices and taxes, continue to weigh heavily on carriers.
“In India, almost all stakeholders except the airlines make money,” said a veteran of the sector. “That is why airlines keep collapsing, even when new ones are launched. High costs, taxation, limited management bandwidth, and thin funding make survival a challenge.”
The Need for Cost Rationalisation
While airline failures are not unique to India, experts warn that the country’s cost-heavy environment is particularly hostile. “Flying is no longer a luxury, and to keep it accessible to the common man, cost and tax rationalisation is essential,” noted a senior airline official.
With the government actively supporting new entrants, the hope is that these steps, coupled with structural reforms, can create a more sustainable aviation ecosystem in India.
