The central government has taken a major step to increase competition in India’s aviation sector. Recently, the government has issued No Objection Certificates (NOC) to two new airlines, Al Hind Air and FlyExpress, after heavy delays and cancellations of IndiGo Airlines flights. It aims to increase options in the country’s domestic aviation market and reduce dependence on a select few carriers.
Talked to three new airlines
Civil Aviation Minister Ram Mohan Naidu said that in the last one week, the ministry has held talks with the teams of three potential airlines. These include Shankha Air, Al Hind Air and Fly Express. Shankha Air has already received the NOC, while Al Hind Air and FlyExpress have been approved this week.
Two companies have a strong dominance
Currently, India’s domestic aviation market is dominated by IndiGo and Tata Group’s Air India. These two together handle about 90 percent of the passenger traffic. Recently, due to technical and operational problems in IndiGo, hundreds of flights had to be cancelled. This made it clear that if one major airline suffers a setback, it affects the entire aviation network.
Profile of new airlines
Al Hind Air is part of the Kerala-based Al Hind Group, while FlyExpress is backed by a Hyderabad-based courier and cargo services company. At the same time, Shankha Air plans to fly regional and metro routes with a special focus on connecting cities like Lucknow, Varanasi, Agra and Gorakhpur in Uttar Pradesh.
Government policy and UDAN scheme
The minister said that Modi government’s policies are focused on increasing the number of flights in metros and small cities. The UDAN scheme has helped small airlines like Star Air, India One Air and Fly91 to reach unserved cities.
Next challenge after NOC
Although obtaining an NOC allows airlines to begin preparations for operations, it does not allow commercial flights. This requires obtaining an Air Operator Certificate (AOC) from the DGCA, which is a long and arduous process.
Increased monitoring and competition
IndiGo currently has over 60 per cent market share, while the Air India group has around 25 per cent. Meanwhile, the Competition Commission is also monitoring IndiGo’s market position. The government hopes that the arrival of new airlines will provide passengers with better services and more options.