Why Alhind Air's ATR 72 Fleet Acquisition Stalled After Regulatory Approval

January 1, 2026 at 07:17 PM•3 min read

Alhind Air's commercial launch faces delays after receiving its NOC, as the carrier struggles to secure financing for its planned ATR 72 turboprop fleet acquisition, stalling the final

Key Points

1Alhind Air received its Ministry of Civil Aviation NOC in December 2025, but the launch is stalled by aircraft acquisition delays.
2The primary hurdle is financing, as the parent group reportedly refused to provide collateral for the purchase of pre-owned ATR 72 aircraft.
3Without confirmed aircraft contracts, the airline cannot apply for the final Air Operator's Certificate (AOC) required to begin commercial flights.
4To conserve cash, Alhind Air placed a majority of its workforce on leave without pay, highlighting the financial strain of the delay.

Alhind Air's planned commercial launch faces significant delays. This comes despite receiving its No-Objection Certificate (NOC) in December 2025. The primary issues are aircraft acquisition financing and securing a fleet. Without confirmed aircraft contracts, the carrier cannot apply for its Air Operator's Certificate (AOC). The AOC is the final clearance needed to begin commercial flights.

Financing Stalls ATR 72 Turboprop Acquisition

Alhind Air intends to start operations with three ATR 72 turboprop aircraft. The airline then plans to expand its fleet to seven over time. Management prefers purchasing pre-owned aircraft that are four to five years old. This strategy aims to reduce overall long-term operating costs. However, this ownership model requires substantial upfront capital.

Sources indicate that financing is the main hurdle, not aircraft availability. Industry executives note that the pre-owned aircraft market has available ATRs. The financing discussions reportedly stalled when the parent group would not provide hard security or collateral. This collateral is typically required for aircraft purchase financing. The airline had engaged Martin Consulting as an advisor for the acquisition of two ATR aircraft. Martin Consulting has since declined comment, citing arbitration.

Impact on Operations and Workforce

Delays between initial launch plans and the NOC issuance increased holding costs. To conserve cash, the airline placed a majority of its employees on leave without pay. This move highlights the financial strain on the new carrier. The launch delay impacts India's push for more regional competition. The government granted NOCs to several new Indian carriers to diversify the market.

Broader India Regional Aviation Context

India's regional aviation sector is a key growth area. Global bodies like IATA recognize this rapid expansion. ATR aircraft are crucial for this growth, with IndiGo being a major operator. The ATR 72 is efficient for connecting smaller cities. Alhind Air plans to base its initial services out of its Kochi operational hub. The airline aims to connect southern India, including routes under the government’s UDAN scheme. The UDAN scheme promotes regional air travel accessibility. This is vital for the continued expansion of air connectivity across the country, as reported by leading aviation news outlets.

Key Challenge: Securing financing for outright aircraft purchases without parent company collateral.
Regulatory Status: NOC secured, but AOC application awaits confirmed aircraft contracts.
Market Impact: Delay slows the government's effort to introduce competition in the regional sector.
Fleet Plan: Initial launch planned with three ATR 72 turboprop aircraft.