Shankh Air: A New Airline in Indian Skies

A new airline is on the horizon of Indian civil aviation. Named as Shankh Air, the new airline will have hubs at Noida and Lucknow in Uttar Pradesh. The NOC received from the Civil Aviation Ministry will remain valid for three years, though it is yet to obtain operational approval from Director General of Civil Aviation. The airline plans to have scheduled operation at intra-state and inter-state levels. This is going to be a full-service airline and will be providing two cabin classes to passengers. Among the key touchstones of its operations would be competitive pricing and reliability of operations. This will also have a strong focus on passenger comfort. The airline is expected to line up fleet of Boeing 737-800NG planes which are narrow-bodied fuel efficient planes.

It is rather interesting to note that in a market where low cost carrier seem to have better chances of survivability, the airline has chosen to be a full service carrier with two cabin configuration. It is the low cost carrier Indigo which has been ruling the Indian skies for more than one decade now. With a domestic market share of more than 63%, Indigo is the undisputed king of Indian aviation.

Prospects for Future-The Bright Spot

At present, the domestic civil aviation market of India is the third largest in the world, handling about 376 million passengers in FY2024 which is a 15% jump over the previous year. For the current financial year, the projections point to about 6-7% increase in domestic sector and 9-11% increase in the international passengers.

With penetration levels of only 10% in Indian market, there is tremendous scope of growth. The fleet of air planes is expected to be about 800 by March 2025. With orders placed for another 2000 planes and deliveries happening in phased manner over a period of many years, there is promise in the future.

Where does Air India stand?

The airlines owned by Tata Group, such as Vistara and Air India, are also showing improved financials and have gained ground in the market. Air India is the second largest airline company of India at present in terms of domestic passenger traffic share. It is expected to aquire both Vistara and AirAsia India. AirAsia India will be merged with AirIndia Express, the low cost subsidiary of Air India. With these mergers, Air India will be command a good market share and have a good positioning to compete with Indigo.

Where are Spicejet and GoAir?

Spicejet and GoAir are eyeing more funds to come out of the red and to bolster their operations. But, in a market which is famed for being the ‘death-knell’ of airlines, the revival is not going to be easy and will take a long time. This puts Indigo and Air India in formidable position as the key drivers.

What About Akasa Air and Fly91?

Both Akasa Air and Fly91 are new airline ventures. Akasa Air is funded by late Rakesh Jhunjhunwala and is already in operation since 2021. Fly91 is a low cost regional airline started by Harsha Raghavan and Manoj Chacko. It is based in Goa and began operations in March 2024 itself.