India's aviation sector faces skepticism over the potential of newly proposed regional carriers to challenge the existing duopoly. The Federation of Indian Pilots (FIP), representing approximately 6,000 pilots, expressed concerns that these airlines lack the necessary funding and expertise to survive long-term, citing the historical failure of similar startups in India.
CS Randhawa, FIP president, highlighted that airlines such as Shank Air, Al Hind Air, and Fly Express are often prematurely heralded as game-changers, but their actual operational status shows signs of struggle. Randhawa pointed out issues including short airline lifespans, financial instability, delayed certification processes, and high taxation burdens on aviation fuel and airport charges, which hinder small operators' survival.
Recent government approvals, including no-objection certificates for Al Hind Air and Fly Express, have reignited debate around market competition, but industry experts warn that structural challenges remain unresolved. Randhawa called for policy reforms, including bringing aviation fuel under GST and reducing operational taxes, to enable healthy competition. He emphasized that only well-funded, large airlines are capable of breaking the existing monopolistic or duopolistic market structure in India, and until such reforms occur, the growth of regional airlines will be limited to create merely an illusion of competition.
