What is the story about?
Civil Aviation Minister Ram Mohan Naidu’s recent tweet has created the impression that several new airlines are set to enter Indian skies soon. However, the reality on the ground is far more complex. Securing a "No Objection Certificate" (NOC) is only the first regulatory step, and not a clearance to start flying.
Over the last week, the minister said he met teams from Shankh Air, Al Hind Air and FlyExpress. In total, three airlines received NOCs in 2024.
Who has got an NOC so far
Air Kerala, based in Kerala, was the first to receive an NOC in 2024.
Shankh Air, based in Uttar Pradesh, also secured its NOC in 2024.
Al Hind Air, which already had an NOC in 2024, registered the airline as a separate entity and subsequently received a fresh NOC that the minister referred to.
The latest entrant to receive an NOC is FlyExpress, a South India–based company.
However, an NOC does not mean flights are imminent.
Still non-operational
All three airlines remain non-operational. While these startups targeted a launch around mid-2025, none has a confirmed timeline to begin commercial operations.
That’s because paperwork alone doesn’t put aircraft in the air. To actually launch operations, airlines still need two critical approvals and assets:
And this is precisely where most startup airlines are getting stuck.
The aircraft leasing roadblock
A startup airline promoter told CNBC-TV18 that over ₹30 crore has already been spent on setting up offices and hiring key post-holders required by regulators. Yet, aircraft acquisition remains the biggest hurdle.
According to the promoter, aircraft lessors are demanding:
For startups without an operating history, raising that level of capital upfront is extremely difficult. What these airlines are now seeking is some form of government backing or support to enhance credibility, which could make global lessors more comfortable leasing aircraft to new Indian carriers.
Why lessors are wary of India
The caution among lessors is rooted in recent history. During Go First’s bankruptcy, aircraft lessors were locked in prolonged legal battles with banks and other stakeholders, as planes could not be repossessed due to pending airline dues.
That episode has reinforced the perception that leasing aircraft to Indian airlines carries heightened legal and financial risk especially when it comes to startups.
Big ambitions, hard realities
While the government’s intent to encourage more airlines is clear, the challenges facing new entrants remain structural. India does not lack aspiring airlines but it does face a shortage of aircraft access, capital, and lessor confidence.
Until those issues are addressed, an NOC remains just a document and not a takeoff clearance.
Over the last week, the minister said he met teams from Shankh Air, Al Hind Air and FlyExpress. In total, three airlines received NOCs in 2024.
Who has got an NOC so far
Air Kerala, based in Kerala, was the first to receive an NOC in 2024.
Shankh Air, based in Uttar Pradesh, also secured its NOC in 2024.
Al Hind Air, which already had an NOC in 2024, registered the airline as a separate entity and subsequently received a fresh NOC that the minister referred to.
The latest entrant to receive an NOC is FlyExpress, a South India–based company.
However, an NOC does not mean flights are imminent.
Still non-operational
All three airlines remain non-operational. While these startups targeted a launch around mid-2025, none has a confirmed timeline to begin commercial operations.
That’s because paperwork alone doesn’t put aircraft in the air. To actually launch operations, airlines still need two critical approvals and assets:
- Aircraft
- Air Operator Permit (AOP) from the Directorate General of Civil Aviation (DGCA)
And this is precisely where most startup airlines are getting stuck.
The aircraft leasing roadblock
A startup airline promoter told CNBC-TV18 that over ₹30 crore has already been spent on setting up offices and hiring key post-holders required by regulators. Yet, aircraft acquisition remains the biggest hurdle.
According to the promoter, aircraft lessors are demanding:
- Around ₹100 crore as security deposit
- Proof of nearly ₹500 crore in bank guarantees
For startups without an operating history, raising that level of capital upfront is extremely difficult. What these airlines are now seeking is some form of government backing or support to enhance credibility, which could make global lessors more comfortable leasing aircraft to new Indian carriers.
Why lessors are wary of India
The caution among lessors is rooted in recent history. During Go First’s bankruptcy, aircraft lessors were locked in prolonged legal battles with banks and other stakeholders, as planes could not be repossessed due to pending airline dues.
That episode has reinforced the perception that leasing aircraft to Indian airlines carries heightened legal and financial risk especially when it comes to startups.
Big ambitions, hard realities
While the government’s intent to encourage more airlines is clear, the challenges facing new entrants remain structural. India does not lack aspiring airlines but it does face a shortage of aircraft access, capital, and lessor confidence.
Until those issues are addressed, an NOC remains just a document and not a takeoff clearance.
