IndiGo fallout: Government gives NOC to 2 upcoming airlines

NEW DELHI: Seeing the consequences of a duopoly in Indian skies earlier this month when IndiGo schedule collapsed, the aviation ministry has stepped up its efforts to ensure Indian flyers have more choices when it comes to airlines. It has issued no objection certificates to two proposed airlines this week.

“Over the last one week, met teams from new airlines aspiring to take wings in Indian skies—Shankh Air, Al Hind Air and FlyExpress. While Shankh Air has already got the NOC from Ministry, Al Hind Air and FlyExpress have received their NOCs in this week. It has been endeavour of the ministry to encourage more airlines in Indian aviation which is amongst the fastest growing aviation markets in the world owing to the policies of Modi government. Schemes like UDAN, has enabled smaller carriers Star Air, India One Air, Fly91 etc to play an important role in the regional connectivity within the country and there is more scope for further growth,” Union aviation minister Ram Mohan Naidu said on X Tuesday.


The aviation industry wants the govt to take a close look at factors that have led to India having among the highest operating cost for airlines globally, essentially high jet fuel prices and taxes. “In Indian aviation ecosystem, almost all stakeholders — barring airlines — make money. That’s why we keep seeing airlines regularly collapsing over the last three decades or even more. A new airline can be floated but the same remaining airborne due to several factors like high cost structure, taxes, lack of management bandwidth and thin funding is a big challenge,” said an old timer.

To be sure airline collapses are a global phenomenon and not limited to India. The additional worrying factor here is the cost-hostile environment for airlines. “Flying is no longer a luxury and the dream that it remain in the reach of the common man makes it mandatory to have cost and tax rationalisation,” said a senior airline official.