BUSINESS

Alhind Air puts 120 staff on leave amid DGCA Air Operator Certificate delays.

3 min read
Alhind Air puts 120 staff on leave amid DGCA Air Operator Certificate delays.
Alhind Air, a Kochi-based start-up, placed approximately 120 employees on unpaid leave due to significant financial strain from prolonged DGCA Air Operator Certificate (AOC) delays.

Key Points

  • 1Around 120 Alhind Air staff were placed on a "no work, no pay" basis starting November 15, 2025, due to financial pressure.
  • 2The airline cited prolonged DGCA Air Operator Certificate (AOC) delays and a monthly expense of about ₹2 crore as the reason for the decision.
  • 3Alhind Air holds a preliminary No-Objection Certificate (NOC) but cannot begin scheduled carrier operations without the final AOC from the DGCA.
  • 4The AOC process is stalled by the requirement for aircraft induction, a common roadblock for new Indian start-up airlines due to lessor reluctance.

The Kochi-based start-up airline Alhind Air has placed a large number of employees on a "no work, no pay" basis. This decision follows prolonged delays in securing its Air Operator Certificate (AOC). The Directorate General of Civil Aviation (DGCA) must issue the AOC before the airline can begin scheduled carrier operations. Approximately 120 employees were issued a formal notice. The leave without pay was effective starting November 15, 2025.

Financial Strain and Regulatory Roadblocks

Alhind Air cited the regulatory approval delays as the cause of significant airline financial strain. In a letter to staff, the company noted monthly expenses of about ₹2 crore. This figure includes employee salaries, leading to "substantial financial losses." The letter stated that the survival of the establishment has become "increasingly difficult." Employees were instructed not to report to work after November 15. They were also directed to immediately hand over any company assets. The company promised notification once the DGCA Air Operator Certificate is received.

The AOC Certification Process

Alhind Air, promoted by the Alhind Group, aims to enter the Indian aviation market. The carrier plans to operate domestic flights initially, based out of Kochi. The airline recently received a No-Objection Certificate (civil aviation ministry NOC). This NOC is only a preliminary approval. It allows the airline to proceed with preparatory work but not to start flying. The DGCA AOC process is a complex, multi-stage procedure. It involves detailed scrutiny of the airline's readiness.

Key stages include:

  • Aircraft induction and registration.
  • Crew training and qualification.
  • Compliance audits of safety systems.
  • Demonstration flights to prove operational capability.

Start-up airlines often face delays in the AOC process. A major roadblock is finding a plane to induct, which is required for the next phase of certification. Lessors can be reluctant to commit aircraft to new Indian carriers. This reluctance stems from past disputes over aircraft repossession. Alhind Air had previously indicated plans to use ATR72-500 turboprops. The airline also intends to add Airbus A319 and A320 aircraft as operations expand.

Industry Context and Impact

The Indian aviation market is one of the fastest growing globally. However, it is dominated by a few major carriers. The entry of new players like Alhind Air is seen as vital for increasing competition. It also helps boost regional connectivity. The DGCA process ensures safety and financial viability. However, delays can severely impact new ventures. The airline financial strain seen here highlights the high cost of waiting. This situation is a reminder of the challenges faced by new airlines worldwide, as noted by organizations like IATA. The unpaid leave affects employees who joined the Kochi-based start-up airline hoping for a quick launch. This news is part of the latest commercial aviation news from the region. [https://flying.flights] The DGCA aims to ensure all operators meet international standards set by bodies like the FAA. The fate of Alhind Air's launch now rests on its ability to secure the final regulatory clearance.

Topics

Alhind AirDGCAAir Operator CertificateIndian AviationAirline Start-upRegional Connectivity

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