The Central Government has taken a big step to increase competition in India’s aviation sector. Recently, after massive delays and cancellations of Indigo Airlines flights, the government has issued No Objection Certificate (NOC) to two new airlines Al Hind Air and FlyExpress. Its objective is to increase options in the country’s domestic aviation market and reduce dependence on a few selected companies.
Talks held with three new airlines
Civil Aviation Minister Ram Mohan Naidu said that in the last one week the ministry has held talks with teams of three potential airlines. These include Shankha Air, Al Hind Air and Flyexpress. Shankha Air had already received NOC, while Al Hind Air and FlyExpress were given approval this week.
Two companies have huge dominance
At present, India’s domestic aviation market is dominated by IndiGo and Tata Group’s Air India. Together these two handle about 90 percent passenger traffic. Recently, due to technical and operational problems in IndiGo, hundreds of flights had to be canceled. This made it clear that if one big airline suffers a setback, it impacts the entire aviation network.
Profile of new airlines
Al Hind Air is part of the Kerala-based AlHind Group, while FlyExpress is backed by a Hyderabad-based courier and cargo services company. At the same time, Shankha Air plans to fly on regional and metro routes, with special focus on connecting cities like Lucknow, Varanasi, Agra and Gorakhpur of Uttar Pradesh.
Government policy and UDAN scheme
The minister said that the policies of the Modi government are focused on increasing the number of flights in both metros and small cities. The UDAN scheme has helped small airlines like Star Air, India One Air and Fly91 reach underserved cities.
Next challenge after NOC
Although obtaining the NOC allows airlines to begin preparations for operations, it does not permit commercial flights. For this, it is necessary to obtain Air Operator Certificate (AOC) from DGCA, which is a long and rigorous process.
Increasing surveillance and competition
IndiGo currently has more than 60 percent market share, while the Air India group holds about 25 percent. Meanwhile, the Competition Commission is also keeping an eye on the market position of IndiGo. The government hopes that with the arrival of new airlines, passengers will get better services and more options.