Dubai-based travel giant with 130 global branches receives clearance to launch regional airline serving Indian subcontinent

India's Civil Aviation Ministry has granted no objection certificates to two new airlines, Al Hind Air and FlyExpress, in a strategic move to break the stranglehold of IndiGo and Air India Group, which together control over 90 per cent of the domestic market.

Civil Aviation Minister K Rammohan Naidu confirmed the approvals on December 23 through a post on social media platform X. Decision comes as India grapples with concerns over airline concentration, particularly after IndiGo's recent operational crisis that led to cancellation of 4,500 flights, leaving tens of thousands of passengers stranded.

IndiGo alone commands more than 65% of India's domestic aviation market, raising alarm about over-dependence on a single carrier. Recent widespread disruptions highlighted vulnerabilities in the highly concentrated industry, prompting government action to encourage fresh competition.

Al Hind Air, backed by Dubai-based AlHind Group, represents a significant addition to India's aviation landscape. Founded in Kerala in 1992 as AlHind Tours and Travels, the group expanded to United Arab Emirates and other Middle Eastern countries in 1995. Today, it operates over 130 branches worldwide with interests spanning hospitality, charter services, money exchange, information technology and travel solutions.

Mohammed Haris Thattarathil, Director and Chairman of AlHind Group, is the principal promoter behind the airline venture. Born in Calicut (Kozhikode), Haris holds degrees in History, Economics and Pharmacology. Under his leadership, AlHind transformed from a Kerala-based ticketing operator into a global travel entity with strong Gulf presence.

Al Hind Air plans to launch operations later this year using ATR 72-600 turboprop aircraft for domestic routes. Airline will be based in Cochin, collaborating with Kochi International Airport Limited as its primary hub while leveraging Kerala's airport network for regional connectivity.

Company intends to serve Indian states including Kerala, Karnataka, Tamil Nadu, Andhra Pradesh, Telangana and Goa initially. After expanding domestic fleet to 20 aircraft, the carrier plans international operations using Airbus 320 aircrafts, with United Arab Emirates as the first overseas destination.

AlHind Group already functions as General Sales Agent for major Indian airlines, handling sales, marketing and customer services. This experience positions the company strategically to understand market dynamics and passenger needs.

Minister Naidu emphasised the government's commitment to encouraging more airlines in India's fast-growing aviation market. He pointed to the UDAN (Ude Desh ka Aam Naagrik) scheme, which focuses on improving regional connectivity and has enabled smaller airlines like Star Air, India One Air and Fly91 to operate on underserved routes.

Uttar Pradesh-based Shankh Air, which already holds an NOC, is expected to begin commercial operations in 2026. With Al Hind Air and FlyExpress receiving clearances this week, India's scheduled domestic airline count could rise from the current nine carriers.

However, the push for fresh competition comes against a backdrop of repeated airline failures. Carriers like Jet Airways and Go First shut down operations after being crippled by debt and operational challenges. Regional carrier Fly Big suspended scheduled flights in October, further shrinking the market.

According to Directorate General of Civil Aviation, India's current roster includes IndiGo, Air India, Air India Express, state-owned Alliance Air, Akasa Air, SpiceJet, Star Air, Fly91 and IndiaOne Air.

Government believes significant room exists for growth in regional connectivity segment. Al Hind Air's strategy to offer low ticket prices particularly targets expatriates in United Arab Emirates while maintaining minimal staffing model.

Airline has secured no objection certificate and is now working with regulatory authorities to obtain Air Operator Certificate, the final step before commercial flights can start. Company aims to provide hassle-free domestic air travel, contributing to government's goal of deeper regional connectivity and market competition.

Source: Times of India