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Air Connectivity India

New Delhi, India: The Ministry of Civil Aviation has granted No Objection Certificates (NOCs) to two proposed airline operators Al Hind Air & FlyExpress in a strategic move aimed at expanding competition in India’s domestic aviation market following recent operational turmoil involving market‑leader IndiGo. Civil Aviation Minister Ram Mohan Naidu Kinjarapu said in a social media post that the ministry has met with representatives from three emerging carriers Shankh Air, Al Hind Air and FlyExpress over the past week as part of efforts to encourage new entrants to the sector. While Shankh Air had already received its regulatory clearance earlier, both Al Hind Air and FlyExpress secured their NOCs this week. Al Hind Air is backed by Kerala’s Alhind Group, and FlyExpress is a Hyderabad‑based enterprise traditionally focused on courier and cargo operations. Shankh Air’s proposed business plan includes connecting major cities within Uttar Pradesh, including Lucknow, Varanasi, Agra and Gorakhpur, with affordable air connectivity options. The government’s approvals come amid heightened scrutiny of India’s aviation market structure. Earlier this month, IndiGo’s failure to fully adapt to new crew rostering regulations triggered the cancellation of thousands of flights, stranding thousands of passengers. Industry analysts and officials have called for greater competition to prevent future systemic shocks. The Civil Aviation Ministry has highlighted existing schemes such as UDAN as instrumental in enabling smaller regional players including Star Air, India One Air and Fly91 to expand connectivity, while stressing there is substantial scope for further growth in what is one of the world’s fastest‑growing aviation markets. In the aftermath of IndiGo’s operational disruption, regulators have initiated multiple reviews. The Competition Commission of India (CCI) has taken cognisance of complaints alleging antitrust violations by the airline, which holds a dominant market share. The initial assessment could lead to a detailed investigation if evidence of market abuse is found. IndiGo’s operations, which stabilised in mid‑December with restoration to roughly 2,200 daily flights, are also under regulatory examination. Authorities have imposed temporary fare caps and ordered expedited refunds for affected passengers.   While the approvals for Al Hind Air and FlyExpress signal a policy pivot towards diversification, aviation experts caution that long‑term viability for new carriers hinges on tackling structural challenges such as high operating costs, fuel taxation, and aircraft acquisition bottlenecks. The government’s move to issue NOCs to new airlines reflects a broader strategy to build resilience in India’s air transport sector by reducing over‑dependence on a small number of carriers and enhancing choices for millions of domestic flyers.

India Grants NOCs To Al Hind Air And FlyExpress To Boost Airline Competition

Aviation Today News Desk / December 24, 2025

New Delhi, India: The Ministry of Civil Aviation has granted No Objection Certificates (NOCs) to two proposed airline operators Al […]

New Delhi, India: India’s aviation industry is bracing for a difficult FY2026, with ICRA estimating sector-wide losses to climb to Rs 95–105 billion, almost double the Rs 55 billion loss expected in FY2025. Softening passenger growth, upcoming fleet inductions and ongoing global and domestic disruptions are set to pressure financial performance. Even so, ICRA has maintained a stable outlook for the year, supported by steady travel demand, though influenced by cross-border tensions, accident-related caution and tariff-linked challenges on the commercial side. Domestic passenger traffic in October 2025 reached 142.8 lakh, up 4.5% from October 2024 and 12.9% higher than September 2025. Capacity deployment grew 1.7% year-on-year to 99,816 departures, with passenger load factor rising to 84.7%, compared with 82.4% a year earlier. For April–October 2025, domestic traffic stood at 944.5 lakh, a 1.6% year-on-year increase. ICRA expects full-year FY2026 domestic travel to grow 4–6%, reaching 172–176 million passengers. International traffic carried by Indian airlines rose 5.8% year-on-year in September 2025, touching 28.3 lakh, though sequentially down by 5.7%. In H1 FY2026, international traffic reached 175.6 lakh, marking 9.1% growth. ICRA projects further expansion of 13–15% in FY2026. Aviation turbine fuel (ATF) remains a key cost concern. ATF prices in November 2025 were 4.4% higher year-on-year and 0.8% higher month-on-month. FY2025 had seen average ATF prices fall to Rs 95,181 per KL, about 8% lower year-on-year, but recent months have reversed that relief. Fuel constitutes 30–40% of airline operating expenses, while 35–50% of major costs are dollar-linked. The rupee’s depreciation in Q2 FY2026 led to notable forex losses for several carriers, though most remain unrealised. Fleet shortages persist. Pratt & Whitney engine problems and broader supply-chain delays resulted in around 133 aircraft being grounded across various airlines by March 2025, representing 15–17% of total industry capacity. IndiGo had 70 aircraft grounded in March 2024 due to powder-metal contamination, which reduced to about 40 by September 2025. Go Airlines, hit by similar issues, eventually grounded half its fleet in FY2024 and suspended operations. These constraints have increased operating costs through replacement leases, poorer fuel efficiency and higher spot-rental rates. Despite strong PLFs and firmer yields, profitability remains limited. The industry’s interest coverage ratio is expected to remain at 1.5–1.7 times for FY2026. Large carriers benefit from parent backing, while others continue to face liquidity stress and stretched balance sheets. The DGCA has proposed new passenger-centric norms allowing customers to cancel or modify tickets within 48 hours of booking without charges, provided the travel date is beyond five days (domestic) or fifteen days (international). Refunds are to be processed within 21 working days.

Aviation Forecast

ICRA Warns Of Rs 105 Billion Loss For Indian Aviation In FY2026 Amid Slowing Growth

Aviation Today News Desk / November 21, 2025

New Delhi, India: India’s aviation industry is bracing for a difficult FY2026, with ICRA estimating sector-wide losses to climb to

New Delhi, India: The GST Council on September 3, 2025, announced a revised two-tier GST structure, set to come into effect from September 22, 2025, impacting air travel and luxury services. Under the new system, most goods and services will attract either 5% or 18% GST, while select luxury and “sin” items will be taxed at 40%. For air travel, the changes are as follows: Economy class tickets: Continue at 5% GST, unchanged from previous rates. Premium economy, business, and first-class tickets: Previously taxed at 12% GST, these fares will now attract 18% GST, increasing the cost for premium travelers. For example, a business class ticket booked on September 4, 2025, for travel on September 24, 2025, will attract the old 12% GST, while the same ticket booked on or after September 23, 2025, will incur the new 18% GST. The Finance Ministry clarified under Section 14(a)(i) of the CGST Act, 2017, that GST liability is determined by the time of supply: If goods or services are supplied before the rate change but invoiced afterward, GST depends on the time of supply. Payment after the rate change: time of supply is the earlier of the invoice date or payment receipt date. Payment before the rate change: time of supply is the payment receipt date. The GST on private jets, helicopters, yachts, and pleasure vessels has increased from an effective 31% (28% GST + 3% cess) to a flat 40% GST, eliminating the cess and raising costs for high-end travelers and operators. According to PTI, The International Air Transport Association (IATA) expressed disappointment over the increase in GST on non-economy travel. “Aviation has significant potential to boost India’s economy, both through airline growth and improved connectivity. It is therefore disappointing to increase GST on non-economy travel without clear justification,” said Sheldon Hee, IATA’s Asia Pacific regional vice-president. He added that the tax on premium travel has more than doubled since 2017 and warned that such increases could dampen demand and affect airline profitability, especially since premium travelers often determine a route’s viability. Airlines are expected to pass on the higher GST to passengers, making premium tickets more expensive. Meanwhile, economy travelers benefit from stable fares, with GST unchanged at 5%. The revised structure aims to simplify taxation while ensuring that revenue from luxury and non-essential services contributes to public finances.

IATA Criticises GST Hike on Premium Flights, Warns of Impact on Airline Viability

Aviation Today News Desk / September 8, 2025

New Delhi, India: The GST Council on September 3, 2025, announced a revised two-tier GST structure, set to come into

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