Great news is on the horizon for domestic travelers in India, as the civil aviation sector prepares to welcome three new homegrown airlines in early 2024. The launch of these new carriers comes in response to the booming air travel market, which has seen a remarkable year-on-year growth of 23.57% in 2023, primarily driven by increased domestic departures. This growth presents a lucrative opportunity for new entrants to establish themselves in the expanding aviation landscape.
Over the past couple of months, three companies—Air Kerala and Alhindair from Kerala, and Shankh Air from Uttar Pradesh—have successfully obtained the necessary No Objection Certificate (NOC) from the Civil Aviation Ministry. They are currently in the process of securing their Air Operator Certificate (AOC), which will grant them the flying permits needed to commence commercial flight services on scheduled routes. This regulatory approval marks a significant milestone in their journey toward becoming operational airlines.
The primary focus of these new entrants will be to enhance intra-state and regional connectivity, catering to underserved routes and improving access for passengers. The two Kerala-based airlines are particularly keen on tapping into the high traffic flow between South India and the Middle Eastern countries once they establish a solid footing in the domestic market. This strategic approach aligns with the increasing demand for international travel among Indian passengers, particularly to the Gulf region.
India’s aviation industry is currently experiencing robust growth, with domestic air passenger traffic soaring to 152 million in 2023, up from 123 million in 2022. This surge in passenger numbers highlights the burgeoning middle class and the increasing desire for air travel among Indian citizens. The timing is ideal for new airlines to enter the market and cater to this rising demand, potentially reshaping the travel experience for millions.
Currently, the domestic aviation market is dominated by IndiGo, which holds over 62% market share, followed by Tata Group airlines, including Air India and Vistara, which collectively command nearly 30% of passenger traffic. The entry of these new players is expected to inject competition into the market, providing consumers with more choices and potentially better pricing. As more airlines compete for market share, travelers can anticipate improved services, frequency of flights, and possibly lower fares.
Moreover, the introduction of these new airlines aligns with the Indian government’s vision of enhancing regional connectivity under the Ude Desh ka Aam Nagrik (UDAN) scheme. This initiative aims to make air travel accessible to a larger segment of the population and improve air connectivity in remote and underserved regions. By focusing on regional routes, the new airlines will play a crucial role in achieving this goal.
As the aviation sector prepares for these exciting developments, domestic travelers can look forward to a broader range of options for their travel needs. The anticipated growth of the airline industry in India not only reflects the increasing demand for air travel but also promises to enhance the overall travel experience for passengers. With more airlines entering the fray, the future of air travel in India looks promising, paving the way for a more competitive and customer-centric aviation market.
