Set to be the first scheduled airline from Uttar Pradesh, Shankh Air will have its hub at Lucknow and Noida and it is targeting the upcoming Jewar Airport in Noida for its main operations. 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.
With small but established airlines such as GoAir and Spice Jet fighting for their survival, it is anybody’s guess whether a newcomer to Indian skies – Shankh Air will be able to stay afloat for long. But before it can even fly, the airline has to get an approval from the Directorate General of Civil Aviation (DGCA), after having secured a No-Objection Certificate (NOC) from the Ministry of Civil Aviation recently.
The Indian skies are at present dominated by IndiGo which holds over 60 per cent of the aviation market, making it the nation’s largest airline. It is poised to capture even more passenger traffic, further consolidating its position in the country’s fast-growing aviation sector.
Air India is the second-largest airline and is also expanding rapidly. It plans to absorb Vistara, 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.
New players like Akasa Air and Fly91 have also recently joined the race. Late Rakesh Jhunjhunwala-owned Akasa and Harsha Raghavan and Manoj Chacko-led Fly91 have been trying to make their way amid domination from big, established players.
According to Rajat Mahajan, a partner at Deloitte Consulting, India’s aviation market is shifting towards a few dominant players. “With this consolidation, a couple of airlines are projected to capture about 75 per cent of the market. This leaves a mere 25 per cent for other players, consequently leaving consumers with fewer choices and hence pricier tickets,” Mahajan noted.
Shankh Air had sounded its bugle in February when its young Chairman Sharvan K Vishwakarma had met the Union Minister for Civil Aviation Jyotiraditya Scindia and expressed his keenness to “work under the guidance of Ministry of Corporate Affairs and the Directorate General of Civil Aviation (DGCA)” to launch the country’s newest airline.
Set to be the first scheduled airline from Uttar Pradesh, Shankh Air will have its hub at Lucknow and Noida and it is targeting the upcoming Jewar Airport in Noida for its main operations. 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.
“The company is further directed to comply with relevant provisions regulations of FDI, Sebi etc as well as other applicable rules and regulations in this regard,” the letter of approval from aviation ministry read.
The No-Objection Certificate (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 face limited air travel choices, enhancing regional mobility across India.
Big fish getting bigger
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.
SpiceJet’s market share has been shrinking significantly, falling from 5.6 per cent in January 2023 to just 2.3 per cent by August. The airline, which once held a sizable 10.5 per cent market share in 2021, continues to face difficulties in raising funds to stay afloat.
As larger airlines like IndiGo and Air India continue to expand, smaller competitors are finding it increasingly difficult to survive.
India, now the third-largest domestic aviation market globally, recorded a robust 15 per cent 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.
In the current financial year, domestic air traffic is projected to rise by 6-8 per cent, reaching between 161 and 164 million passengers, while international traffic is expected to jump by 9-11 per cent to between 75 and 78 million passengers by March 2025.
India’s domestic aviation penetration stands at just 10 per cent, suggesting ample room for growth. To further boost connectivity, the Government plans to extend its flagship Udega Desh ka Aam Nagrik (Udaan) programme for an additional 10 years, adding hundreds of new airports to the country’s network.
Indian airlines are poised to capture a larger share of international traffic, which is expected to reach 50 per cent by FY 2027-28, up from 43 per cent in the previous fiscal year, according to a report from credit ratings agency CRISIL. This improvement will be driven by the addition of new routes, increased aircraft deployment, and Indian carriers’ superior domestic connectivity compared to foreign airlines.
