Meghna Barik, Pune
The first scheduled airline from Uttar Pradesh, Shankh Air has received approval from the Civil Aviation Ministry, indicating that India’s aviation industry is about to grow. The approval brings an opportunity for the airline to begin operations. However, approval from the Directorate General of Civil Aviation (DGCA) is required for the final commencement of operations.
Shankh Air attempts to provide services at both interstate and intrastate routes, marking Lucknow and Noida as its main centres of operation. According to the airline’s website, its goal is to improve air connectivity in underserved areas of India in order to boost regional mobility. As Shankh Air gets approvals on one end, there are multiple changes happening in the aviation industry of the country.
The market is dominated by larger players with IndiGo holding a commanding 63 percent of the market and growing its fleet. The other major player Air India is going through a major change. If regulatory approvals are obtained, it is scheduled to merge with Vistara which is jointly owned by Singapore Airlines and Tata Group by the end of next year.
To gain a vital position in the market of low-cost airlines, Air India is in the works of merging with AirAsia India to bring Air India Express. But in this cutthroat market, smaller airlines have difficulties. Go Airlines Inc. due to technical difficulties and financial difficulties the company ceased operations in May. Meanwhile, SpiceJet’s market share fell to 2 per cent by August 2023 as a result of losses and bankruptcy proceedings.
Experts in the field predict a trend toward airline consolidation with a small number of dominant carriers holding up to 75% of the market. According to Deloitte Consulting partner Rajat Mahajan, this will limit customer options and raise ticket prices. New players like Fly91 and Akasa Air are making an effort to make a name for themselves in this rapidly changing industry despite the intense competition.
The domestic aviation market in India which is currently the third largest in the world is still expanding. 376 million passengers were handled in the nation in FY 2024, a 15% increase from the previous year. 84 new aircraft are anticipated to enter service by March 2025 and domestic traffic is expected to increase providing a positive long-term outlook for the industry despite challenges like high operating costs and volatile fuel prices.