UP's first airline Shankh Air will challenge Indigo's dominance, gets approval from Aviation Ministry

Another new name has been added to the list of domestic aviation companies, Shankh Air. This airline has got permission from the Aviation Ministry to start operations. This will be Uttar Pradesh's first aviation company. Its hub is in Lucknow and Noida. However, Shankh Air will have to get approval from the aviation regulator - the Directorate General of Civil Aviation (DGCA) to officially start flying. Shankh Air's Chairman is Shravan Kumar Vishwakarma.

According to the website of Shankh Air, the airline will focus on areas with high demand and limited direct flight options. It intends to increase connectivity in other states besides Uttar Pradesh. Currently, IndiGo dominates the aviation sector with more than 60 percent share. If Shankh Air moves forward as per its plan, IndiGo may lose its passengers on some important routes.

Most of the airlines in the country, including IndiGo, are banking on an aggressive expansion strategy. Air India is going to be merged with Vistara, currently co-owned by Tata Group and Singapore Airlines. Air India is also acquiring AirAsia India and will resultantly merge it with its low-cost subsidiary Air India Express. This will increase Air India's fleet and market share significantly.

It's hard for the small airlines, however, to survive in the price-sensitive market in India. Go Airlines India Limited, for example, closed its business last May. SpiceJet is also facing financial matters. Its market share has shrunk to 2.3 percent, which was 10.5 percent in 2021. Akasa Airlines, which is an airline invested by the late investor and stock market's Big Bull Rakesh Jhunjhunwala was also in trouble last year due to resignation of pilots.