Indigo’s reign in the sky will end! 2 new airlines ready to fly, received NOC from government

Indian Aviation: The effect of airline duopoly in the Indian skies was clearly visible recently when the flight schedule of the country’s largest airline IndiGo completely collapsed. Thousands of passengers had to face a lot of problems due to flight delays and cancellations. This incident once again proved that when the options of airlines are limited in the market, it is the passengers who have to bear the direct loss.

After this entire incident, the Civil Aviation Ministry has intensified its efforts towards providing more options to Indian passengers. This week, the Ministry has issued No Objection Certificate (NOC) to two proposed airlines Al Hind Air and Flyexpress. Earlier, NOC had also been given to Shankha Air.

2 new airlines ready to take off

Aviation Minister Ram Mohan Naidu shared this information on social media platform X on Tuesday. He told that in the last one week he has met teams of many new airlines, which are preparing to fly in the Indian skies. According to the Minister, it has been the constant effort of the Ministry to encourage more and more airlines in the Indian aviation sector.

Ram Mohan Naidu said that due to the policies of Prime Minister Narendra Modi government, India is today among the fastest growing aviation markets in the world. Initiatives like UDAN scheme have given smaller airlines like Star Air, Bharat One Air and Fly91 an opportunity to play an important role in regional connectivity. He said that there is a lot of potential for further development in this sector.

Running the airline for a long time is a big challenge.

Aviation experts believe that merely approving new airlines is not enough. Operating costs in the Indian aviation ecosystem are considered to be the highest in the world. The main reasons for this are high jet fuel prices and heavy tax structure. According to a senior aviation observer, almost all stakeholders in the Indian aviation system, except the airlines, earn profits. This is the reason why many airlines have been closing down in the last three decades.

He said that it is possible to start a new airline, but it is much more difficult to keep it airborne for a long time. High cost structure, tax burden, management limitations and weak funding are the major reasons for this. Industry officials also believe that airline failure is not just an Indian problem but a global trend. However, the additional concern in India is that the environment here is quite cost-hostile for airlines.

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Complete picture in 5 points

• IndiGo schedule collapse exposes the weakness of duopoly – Recently, thousands of passengers were affected by the deterioration in Indigo’s flight schedule, which made it clear that in a duopoly situation, passengers are left with limited options.
• NOC to new airlines – To increase competition, the Aviation Ministry gave NOC to Al Hind Air and Flyexpress, while Shankha Air has already received approval.
• Minister’s statement on aviation growth – The Aviation Minister said that due to the policies of the Modi government, India has become one of the fastest growing aviation markets in the world.
• High operating cost becomes the biggest hurdle – High prices of jet fuel, heavy taxes and expensive operating environment remain big challenges for airlines.
• Need for cost and tax rationalization- Industry experts say that flying is no longer a luxury and if air travel has to be kept affordable for the common man, then the government will have to make rational reforms in cost and tax.