New Delhi, September 28, 2024: India’s newest airline, Shankh Air, has received approval from the Civil Aviation Ministry to commence operations in the country, marking a significant step toward its launch. The airline, which will be based in Uttar Pradesh with hubs in Lucknow and Noida, aims to serve both inter and intrastate routes, connecting major cities with high demand and limited direct flight options. However, before officially starting flights, Shankh Air must secure clearance from the Directorate General of Civil Aviation (DGCA).
Set to become Uttar Pradesh’s first scheduled airline, Shankh Air’s mission is to enhance connectivity across India, specifically targeting regions that currently lack adequate air travel options. According to the company’s website, the airline plans to focus on underserved areas where there is significant travel demand.
The approval letter from the Ministry of Civil Aviation also emphasizes the necessity for Shankh Air to comply with relevant foreign direct investment (FDI) regulations, Securities and Exchange Board of India (SEBI) guidelines, and other applicable rules. The granted No Objection Certificate (NOC) is valid for a period of three years.
Shankh Air’s entry into the market could improve air travel options for regions that currently experience limited connectivity, thus enhancing regional mobility across India.
Currently, IndiGo dominates the Indian aviation market with over 60% market share, firmly establishing itself as the largest airline in the country. With a market share of 63%, IndiGo is well-positioned to capture even more passenger traffic as the aviation sector continues to grow.
Meanwhile, Air India, the second-largest airline, is rapidly expanding its operations. The airline plans to absorb Vistara, a joint venture between Tata Group and Singapore Airlines, by next year, pending antitrust clearance. Additionally, Air India is acquiring AirAsia India and merging it with its low-cost subsidiary, Air India Express, further strengthening its market presence and fleet according to the reports published in travelandtourworld.com.
The ongoing consolidation in India’s aviation sector is resulting in larger airlines becoming even more dominant, while smaller players struggle. Go Airlines India Ltd. ceased operations in May due to financial troubles and engine failures, finding it difficult to secure funding for a revival. Similarly, low-cost carrier SpiceJet has reported continuous losses over the past five years and faces mounting financial challenges, including defaults on lease payments, leading to insolvency proceedings.
SpiceJet’s market share has significantly shrunk, dropping from 5.6% in January 2023 to just 2.3% by August. Once holding a sizable 10.5% market share in 2021, the airline is struggling to raise funds to remain operational.
New entrants like Akasa Air and Fly91 are also making their mark in the industry. Late investor Rakesh Jhunjhunwala’s Akasa and the team of Harsha Raghavan and Manoj Chacko leading Fly91 are striving to carve out a space for themselves amid the dominance of established airlines.
