Three New Carriers Join The Club
By Kamal Shah
India has nine active commercial airlines. But as much as 85 percent of the uplift is centred on two carriers. The others share the remainder. Why then start three new carriers instead of partnering with the other seven and reworking their route maps? It would strengthen the spine as entities and reduce overheads. This core concept of taking on the incumbents with strategic positioning and planning is what Air Shankh, Air Kerala and Alhind are betting on.
Beneath the bells, pomp and circumstance of starting an airline, the truth be told, it is an uphill challenge and guzzles big bucks. Hopefully, the right decisions will be made for the right reasons. This is vital.
India has seen as many as 14 carriers shut down, get acquired, downsized, or restructured in this century. Prominent among them are Kingfisher, Vistara, Jet, GoAir and Indian Airlines. Carriers like Air Carnival, Jagsons, Paramount, Air Pegasus, Air Costa, Air Carnival, Religare Aviation, Deccan Charters, Air Odisha, TruJet are some of the regional carriers that shut down in the 2014 to 2020 period and Indus Air never even got enough thrust to take off.
When it comes to transforming the way a nation connects, few initiatives have been as groundbreaking as the RCS-UDAN scheme, launched in 2017 by the Government of India. RCS-UDAN, or “Ude Desh Ka Aam Naagrik,” quite literally means “Let the common citizen of the country fly,” and this visionary program is doing exactly that—making air travel accessible, affordable, and widespread, especially for India’s tier-2 and tier-3 cities.
Before UDAN, air travel in India was essentially a luxury reserved for the major metropolitan areas and their well-heeled residents. The vast majority of India’s population in smaller cities and remote regions could only dream of the convenience and speed of air connectivity. The RCS-UDAN scheme, however, took the flight path less travelled—focusing on unserved and underserved airports and breathing new life into regional aviation. By bridging the gap between smaller cities and major urban centers, UDAN has not only enhanced India’s air network but also become an engine of economic growth, stimulating trade, tourism, and employment in countless communities.
Perhaps the most exciting ripple effect of UDAN has been the rise of airlines dedicated to serving regional India. For years, state-owned Alliance Air stood alone in this niche sector. But the launch of UDAN triggered a flurry of activity and innovation. Private players like Star Air, fly91, Indiaone, and Flybig entered the skies, bringing with them diverse fleets, refreshed perspectives, and renewed enthusiasm for regional aviation. These carriers are no longer just operating as fringe players. Still, they are integrating seamlessly with the mainline network and offering a variety of aircraft types that suit smaller runways and airports.
The transformation doesn’t stop there. Major airlines, such as IndiGo and SpiceJet, have also recognized the immense potential in the regional segment, deploying fuel-efficient turboprops and even narrow-body aircraft to connect smaller cities. The statistics speak volumes: This July, a record 1088 city pairs are connected by active flights, with an impressive 68% of these routes—747 to be exact—operated by a single airline. IndiGo is the undisputed leader in this landscape, with 521 unique monopoly routes, many of which serve regional destinations and smaller airports.
Alliance Air continues to be a vital cog with 85 monopoly routes, while Indiaone, fly91, Star Air, and others, such as SpiceJet and Air India, bring their expertise to dozens more underserved connections. This rich tapestry of operators, both old and new, has come together to cover the vast geography of India with unprecedented efficiency.
What makes UDAN and India’s regional aviation renaissance truly thrilling is the breaking of barriers—geographical, economic, and aspirational. No longer must people endure arduous journeys by road or rail to reach distant cities or important events. Today, children in remote areas can pursue higher education in urban hubs, families can reunite faster than ever, and entrepreneurs can tap into new markets and opportunities.
The RCS-UDAN scheme is undoubtedly a game-changer. It has democratized the skies, pushed airlines to innovate and compete, and brought the dream of flying within reach for a growing number of Indians. As these dynamic city pairs proliferate and more regions emerge on the aviation map, the benefits—social, economic, and emotional—are poised to soar even higher. Here’s to the spirit of UDAN: making every Indian’s sky a little closer, a little friendlier, and a lot more accessible!
Regional Connectivity Scheme (UDAN) has been instrumental in this transformation, with operational routes expanding from 48 in 2017–18 to 619 today. Airports like Tezu in Arunachal Pradesh, Kishangarh near Ajmer and Kannur in Kerala have brought remote and culturally rich regions closer to travelers.
The scheme’s positive impact is evident at locations like Darbhanga airport, a notable UDAN success where robust domestic and rising international demand testify to its effectiveness. Moreover, UDAN has significantly contributed to job creation, not only directly in aviation and allied services but also indirectly across the hospitality and tourism sectors. Initiatives under UDAN 3.0, such as tourism-centric routes, have yielded impressive results in the North-East, with airports like Pasighat, Ziro, Hollongi, and Tezu catalyzing growth in connectivity and local tourism.
India is soaring to new heights with its ambitious UDAN scheme! Since its launch, UDAN has revolutionized regional connectivity by operationalizing an astounding 619 routes and linking 88 airports across the nation. Small towns, once considered remote, are now just a flight away from bustling metros. This transformation has made air travel accessible and affordable to millions of Indians, igniting aspirations and turbocharging economic growth.
And the journey doesn’t stop here! Building on its resounding success, a revamped UDAN initiative is on the horizon, promising to add 120 new destinations to the nation’s air map. Imagine the possibilities—more cities connected, more opportunities for business, travel, and cultural exchange! Initiatives like these are not just about transportation; they are about connecting dreams and unleashing the true potential of Bharat.
What’s even more exciting is the planned expansion of seaplane and helicopter services. These innovations aim to bring remote and underserved areas into the mainstream, making previously inaccessible spots just a short hop away. With every new route and service, the spirit of connectivity grows stronger, weaving the diverse threads of our vast country even closer together.
Assuming the newbies have done their homework and integrated honest worst-case scenarios in their planning, they would then have the luxury of flipping the coin to its bright side. And there is a bright side if political considerations, ego and image are not the key factors in the equation.
Establishing three new airlines can stimulate competition, cater to diverse market needs and focus on innovation, leading to enhanced customer service and operational efficiency.
It does not stop here.
The introduction of the new airlines fosters competition, which can lead to lower fares, improved services and upgraded infrastructure. In a market dominated by a few major airlines, new entrants can disrupt the status quo, compelling established carriers to enhance their offerings. This competition can significantly improve the customer experience as airlines strive to attract and retain passengers through loyalty programs, improved in-flight services, and enhanced connectivity.
That said, it also fosters connectivity across a nation and strengthens the route maps with improved hub-and-spoke feeder services and A-to-B direct options for Tier II and even Tier III cities and towns.
Carriers like Air Shankh, now slated to be the state of Uttar Pradesh’s first such addition, will obviously link its towns and cities, creating mobility of a much higher order. Based at the upcoming Noida Jewar International Airport (DXN), its initial routes will connect Lucknow, Varanasi, Gorakhpur, and major metros like Delhi, Mumbai, and Bengaluru. The fleet will be a mix of turboprop and regional jet aircraft. Plans to commence operations were announced in 2023 and the investment garnered is in the region of 250 million USD.
The aim is to offer air travel options on new routes and turn many of these destinations into prosperous city ports. The intention is to offer more affordable ticketing and gradually expand the city pairings. UP is rich in culture and history, and a network of convenient air travel connections would certainly be a boost for tourism.
Primarily expected to operate a mix of turboprop aircraft, such as the ATR 72, and regional jets, including the Embraer E175 or Bombardier CRJ Series, it may later include narrowbody aircraft from the two major manufacturers and their 737 and 320 families. The initial fleet size is not publicly confirmed, but it is likely to start with a modest number of aircraft (around 5-10) to cover regional routes.
Air Kerala has been on hold for a long time. The idea was first mooted in 2005 and has been hanging fire since then. Operating from Thiruvananthapuram, it plans to operate on both domestic and international routes in the long term, serving Kerala and neighboring regions, including the Gulf states. This could be very lucrative if the route map covers smaller towns in the state and offers direct connectivity at an affordable cost. With 3.5 million Malayalees working in the GCC and often finding that they are given short shrift in terms of ticket pricing and difficulty reaching their hometowns by surface transport, the airline’s idea of keeping the customer at the arrowhead of its work ethos has the potential. To make a very positive impact. The fleet is anticipated to include Airbus A320 and Boeing 737 aircraft for domestic and regional routes. In brief, Air Kerala aims to launch international flights by 2027, with Kochi as the likely hub for these operations. Air Kerala is positioning itself as an ultra-low-cost carrier, focusing on affordability and accessibility.
Also catering to a similar customer base, Alhind Air has profound long-term ambitions and aims to serve both domestic and select international routes.
It will operate Airbus and Boeing aircraft, with a focus on regional markets.
The airline strives to achieve competitive pricing and a customer-centric approach. The goal is to provide exceptional service, innovation, and sustainability, seamlessly connecting people and places.
The airline plans to expand its fleet to seven within a year and begin Gulf operations within two years.
Alhind Air aims to launch its operations by the end of this year, pending final approval from the Directorate General of Civil Aviation (DGCA).
Will these three newcomers have a significant impact on Indian aviation? There is no reason why not, as the potential is there and they are well-positioned to capitalize on the markets positively. UP is the largest state with a population of 242 million and multiple high-density townships like Moradabad, Meerut, Ghaziabad, Aligarh, Agra, Bareilly, Lucknow, Kanpur, Allahabad, Gorakhpur, Varanasi, and over ten burgeoning towns with ambitions to become booming cities.
The two Kerala-based operators have a readymade network stretching to the diaspora. Linked to visitation by family members from the home base, reasonable pricing can ensure a healthy uplift.
In God’s own country, Kochi, Kozhikode, and Thiruvananthapuram are generally considered Tier 2 cities, while Kollam, Thrissur, Kannur, and Malappuram are often included in the Tier 2 or Tier 3 category. Growth is booming dramatically in Wayanad, Idukki, Pathanamthitta, Kottayam, and Palakkad. All of them will benefit tangibly once they are networked.
One can only wish these three new airlines the best of luck and express the hope that their due diligence pays off.
