Shankh Air, India’s Newest Airlines Receives Approval from the Civil Aviation Ministry

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New Delhi: Shankh Air, India’s newest airline, has received approval from the Civil Aviation Ministry to operate in the country, marking a significant milestone in its journey to launch operations. However, before it can officially begin flights, the airline will need clearance from the Directorate General of Civil Aviation (DGCA).

Set to be the first scheduled airline from Uttar Pradesh, Shankh Air will hub at Lucknow and Noida. According to the company’s website, the airline aims to connect major cities across India, offering both interstate and intrastate routes, focusing on areas with high demand and limited direct flight options.

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The letter of approval from aviation ministry read, “The company is further directed to comply with relevant provisions regulations of FDI, SEBl etc. as well as other applicable rules & regulations in this regard.” The NOC granted to operate will be valid for a period of three years, it further stated.

The airline’s launch could bring improved connectivity to regions that currently face limited air travel choices, enhancing regional mobility across India.

Currently, IndiGo holds over 60% of India’s aviation market, making it the nation’s largest airline. With a current market share of 63%, the airline is poised to capture even more passenger traffic, further consolidating its position in the country’s fast-growing aviation sector.

Air India, the second-largest airline, is also expanding rapidly. The airline plans to absorb Vistara, currently co-owned by Tata Group and Singapore Airlines, by next year, pending antitrust clearance. In addition, Air India is acquiring AirAsia India and merging it with its low-cost subsidiary, Air India Express, further bolstering its fleet and market presence.

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Now the third-largest domestic aviation market globally, India recorded a robust 15% year-on-year increase in air passenger traffic, handling 376 million passengers in FY24, according to a report by aviation advisory firm CAPA India. This growth highlights the resilience and expansion of the aviation sector despite challenges faced by several carriers in recent years.

The ongoing consolidation in India’s aviation sector is seeing larger airlines grow bigger, while smaller players are retreating. Go Airlines India Ltd., which ceased operations in May due to financial difficulties and engine failures, is struggling to secure funding for revival efforts. Similarly, no-frills 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.

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New players like Akasa Air and Fly91 have also joined the race and have been trying to make their way amid domination from big, established players.

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