Recently, thousands of flights of the country’s largest airline, IndiGo, were cancelled, causing significant inconvenience to passengers. Learning from this, the government has expedited the process of issuing NOCs to new airlines. In this regard, two companies have recently received the green light.
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New Flight Service: IndiGo, the country’s largest airline, holds approximately 65% of the market. However, thousands of its flights were recently cancelled, causing significant inconvenience to passengers. Learning from this, the government has intensified its efforts to provide more options to travelers. This week, the ministry issued No Objection Certificates (NOCs) to two new airlines. The government believes there is room for at least five major airlines in India, currently dominated by IndiGo and Air India.
Union Aviation Minister Ram Mohan Naidu stated on X on Tuesday that over the past week, he has met with teams from new airlines preparing to fly in Indian skies. These include Shankh Air, Al Hind Air, and FlyExpress. Shankh Air has already received a government NOC, while Al Hind Air and FlyExpress received their NOCs this week. The government wants to encourage more airlines in the aviation market.
Operating Costs
India is one of the world’s fastest-growing aviation markets. Schemes like UDAN have helped smaller airlines like Star Air, India One Air, and Fly91 play a key role in regional connectivity within the country, and there is still significant room for growth. The aviation industry wants the government to take a closer look at the reasons why operating costs for airlines in India are among the highest in the world. These primarily include high jet fuel prices and taxes.
An aviation expert said, “Almost all stakeholders in the Indian aviation ecosystem, except airlines, are driven by financial gains. That’s why we’ve been witnessing a series of airline closures over the past three decades or more. Starting a new airline is easy, but keeping it running for a long time is a major challenge. There are many reasons for this, including high costs, taxes, lack of management, and lack of funding.”
Air travel is no longer a luxury.
While airline closures are not unique to India, they are occurring worldwide. What is worrying in India is the cost-conscious environment for airlines. A senior airline official said that air travel is no longer a luxury, and rationalizing costs and taxes is essential.
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