Days after securing a no-objection certificate (NOC), Kochi-based start-up Alhind Air is facing financial stress.
The airline has reportedly placed employees on a “no work, no pay” basis due to delays in obtaining the mandatory AOC.
Around 120 staff members have been issued notices placing them on unpaid leave from November 15, 2025.
Just days after receiving a no-objection certificate (NOC) from the civil aviation ministry, Kochi-based start-up airline Alhind Air appears to be facing financial stress. The airline, which is still awaiting its Air Operator Certificate (AOC) from the Directorate General of Civil Aviation (DGCA), has reportedly placed its employees on a “no work, no pay” basis.
According to a report by the Financial Express, the move has been attributed to delays in securing the AOC, which is required for the airline to begin commercial operations. Around 120 employees have been issued a formal notice stating that they will be placed on unpaid leave with effect from November 15, 2025, until further communication, as per an internal document reviewed.
1 December 2025
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In its communication to staff, the airline said prolonged delays in obtaining regulatory clearances, including the AOC, have severely strained its finances. It noted that monthly expenditure, including salary payouts, is about ₹2 crore, resulting in “significant financial losses” and making it “increasingly challenging” to continue operations.
Despite sustained efforts, the company has been unable to achieve the intended outcomes, and the viability of the establishment has become progressively difficult, the letter said. Employees were instructed not to report for duty after November 15 and were told they would be informed once the AOC approval is granted. The notice also directed staff to immediately return any company property in their possession to the human resources team.
The communication added that employees had been verbally briefed about the decision earlier in November and that the formal notice was issued after some staff members sought written confirmation.
These developments come after the Union civil aviation minister K Rammohan Naidu announced that two new carriers, AIhind Air and FlyExpress, had received NOCs. Separately, Uttar Pradesh-based Shankh Air has already secured an NOC and is expected to begin commercial operations in 2026.
The NOC issued by the government serves as an initial clearance that allows an airline to begin preparatory activities, but it does not authorise the launch of flight operations. To start flying, an airline must obtain an AOC, a multi-step process that includes aircraft induction, crew training, regulatory audits and proving flights. The duration of this process varies depending on the airline’s preparedness and regulatory evaluation.
Backed by the Alhind Group, Alhind Air has been planning its entry into India’s aviation sector as a scheduled airline, with Kochi proposed as its home base and domestic services forming the first phase of operations. The carrier has said it aims to build a regional footprint initially before scaling up further.
The push to induct new airlines has gained urgency amid concerns over the sector’s effective duopoly. IndiGo and the Air India Group, which includes Air India and Air India Express, together account for more than 90% of domestic passenger traffic, with IndiGo alone holding a market share of over 65%.
