Al Hind Air Faces Aircraft and Funding Delays Before Commercial Launch

Kerala-based Al Hind Air’s plan to enter India’s aviation sector has encountered delays following difficulties in acquiring aircraft and securing funding, as per The Financial Express report. 

Despite receiving a government approval in December 2025, the airline has yet to proceed to the next licensing stage. 

Aircraft Unavailable or Financing Bottlenecks? 

Al Hind Air had initially planned to launch operations with 3 ATR 72 turboprop aircraft before scaling its fleet up to 7. The company had been exploring the purchase of pre-owned ATR aircraft, around 4 to 5 years old, to keep costs manageable. However, the actual bottleneck appears to be financing rather than aircraft availability. 

Industry sources confirmed that such aircraft are currently available in the secondary market. Several Indian regional carriers are already onboarding pre-owned ATRs, which suggests supply may not be the primary challenge for Al Hind Air at this point. 

Preference for Ownership Adds Capital Strain 

Unlike many new airlines that prefer leasing to reduce upfront capital expenditure, Al Hind Air is focusing on outright ownership of aircraft to control long-term operational costs. This requires substantial funding and collateral assurance, both of which seem to be lacking at this stage. 

The airline had engaged Martin Consulting for the acquisition of 2 ATR aircraft. However, talks reportedly stalled after the parent entity declined to offer hard collateral required by financiers. Martin Consulting did not comment due to ongoing arbitration. 

Read More: FlyExpress and Al Hind: 2 New Airlines Get Green Light in India from Govt! 

Cash Crunch Impacts Workforce and Regulatory Approval 

Delays between Al Hind Air’s initial plans and receiving the no-objection certificate have caused an increase in holding costs. As part of cost-saving measures, a majority of employees have reportedly been put on leave without pay. 

Lack of firm aircraft acquisition agreements is preventing the airline from applying for an air operator’s certificate — the last regulatory step needed to begin commercial operations. The company intends to base its 1st routes out of Kochi, under the UDAN regional connectivity programme. 

Conclusion 

Al Hind Air’s delayed entry demonstrates persistent hurdles faced by new regional carriers in India. Despite obtaining regulatory clearance, funding constraints and acquisition challenges are proving to be major stumbling blocks. 

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