Indigenous Airlines Soar: India’s Aviation Boom Continues

The Indian aviation sector is set for a significant boost as three new domestic airlines prepare to take flight in 2025. This expansion is a direct response to the soaring popularity of air travel, evidenced by the robust 23.57% growth in domestic departures last year.

In a significant development for India’s aviation sector, three new airlines have recently secured the necessary regulatory approvals to begin operations. Air Kerala and Alhindair, both based in Kerala, and Shankh Air from Uttar Pradesh, have been granted No Objection Certificates (NOCs) by the Civil Aviation Ministry and are now working towards obtaining Air Operator Certificates (AOCs) to commence commercial flight services on scheduled routes.

The upcoming airlines aim to strengthen intra-state and regional air connectivity as a starting point, subsequently expanding their operations to inter-state travel. The Kerala-based airlines have identified a lucrative opportunity to serve the high-volume passenger traffic between South India and the Middle East once they have established a strong presence in the domestic market.

The Indian domestic aviation market is currently dominated by IndiGo, which possesses a market share of over 62%. The Tata Group’s airlines, Air India and Vistara, collectively hold nearly 30% of the passenger traffic. The entry of three new airlines into the market is anticipated to reshape the competitive landscape, potentially benefiting consumers through more options and lower prices.

With the exit of two major domestic carriers and Tata Group’s decision to streamline its aviation operations, the Indian aviation landscape was poised for a significant consolidation. However, the entry of three new airlines and SpiceJet’s successful fundraising have disrupted this trend, creating a more dynamic and competitive market environment.