Indigo and Air India currently dominate the aviation sector of the country. But soon these companies may face a tough challenge. The Aviation Ministry has given permission to a new airline to start operations whose hub will be in Uttar Pradesh.
New Delhi: A new airline is ready to take off in the aviation sector of the country. The Civil Aviation Ministry has approved the country’s newest airline Shankh Air to start its operation. However, before officially starting flights, the airline will need approval from aviation regulator DGCA. It will be Uttar Pradesh’s first scheduled airline with hubs in Lucknow and Noida. According to the company’s website, the airline aims to connect major cities of the country. The company’s focus will be on routes where demand is high and options are low. The Aviation Ministry said that the company has been directed to follow the provisions and rules related to FDI etc. The NOC given for operations will be valid for a period of three years. Currently IndiGo is the country’s largest airline. It has a 63% share in India’s aviation market. Meanwhile, Air India, the second largest airline which has become a part of the Tata Group, is also expanding rapidly. Vistara will merge with it in November. Also, Air India is also acquiring AirAsia India and merging Air India Express.
Aviation market
According to a report by aviation consultancy firm CAPA India, India is the third largest domestic aviation market in the world. Air passenger traffic in the country recorded a strong growth of 15% in FY 2024. Domestic air traffic is expected to grow by 6-8% in the current financial year. With this, it will reach 161 to 164 million passengers. Similarly, international traffic is expected to grow by 9-11%. It will reach 75 to 78 million passengers by March 2025.
However, the airline business in the country is not easy. Many high-profile airlines have closed down in the last decade. These include Kingfisher Airlines, Jet Airways and Go First. SpiceJet is also struggling to save its existence. CAPA India estimates that Indian airlines will add 84 new aircraft to their fleet by the end of March 2025. This will take the total number of aircraft in domestic service to 812.
