Three New Airlines To Begin Flying Soon
Three New Airlines Set To Start Commercial Operations In India
By Sanjay Singh
New Delhi, October 11: At least three new airlines are all set to start commercial air operation in India with No Objection Certificates (NOC) from the Directorate of Civil Aviation (DGCA) and the Ministry of Civil Aviation (MoCA).
The new Kerala based airlines, Air Kerala, Alhindair, along with Shankh Air from Uttar Pradesh, have already received their NOC, according to government sources. These to be airlines are now working toward obtaining their Air Operator Certificates (AOC), which will allow these airlines to begin commercial operations on scheduled routes.
Initially, these carriers will focus on enhancing regional connectivity under the UDAAN’s Regional Connectivity Scheme (RCS) within their states before expanding to broader, inter-state routes.
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Idia’s booming aviation sector is about to welcome three new homegrown airlines in early 2024, signaling a new era for domestic air travel. The country’s civil aviation industry has been experiencing impressive growth, with passenger traffic surging by 23.57 per cent year-on-year (YoY) in 2023.
This growth has largely been driven by an increase in domestic departures, making it a prime opportunity for new players to enter the market. Once they establish themselves in the domestic market, Air Kerala and Alhindair aim to target the high-demand routes between South India and the Middle East, a region with strong travel ties due to the large expatriate community.
This regional strategy allows the new entrants to build a strong foundation before competing on more established routes. India’s aviation market is ripe for expansion, with domestic air passenger traffic reaching 152 million in 2023, a sharp rise from 123 million in 2022. This surge reflects the country’s growing middle class and increased air travel demand.
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Currently, the sector is dominated by IndiGo, which holds over 62 per cent of the market, and Tata Group airlines like Air India and Vistara, which account for nearly 30 per cent. The arrival of these new players could potentially reshape the competitive landscape, offering consumers more choices and potentially better pricing.
The recent grounding of Jet Airways in 2019 and Go First in 2023 had created concerns of a duopoly in the market, with IndiGo and Tata Group airlines controlling the majority share. However, with SpiceJet securing fresh capital and these new airlines set to enter the fray, competition is expected to intensify, giving a fresh boost to market sentiment.
Additionally, India also is moving ahead on airports expansion which has doubled in India in the last year, from 74 to 157.
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