Alhind Air Places Staff on Unpaid Leave as Delays Stall Launch

Alhind Air, the aviation wing of the Kerala-based travel conglomerate Alhind Group, has hit a significant turbulence before even taking flight.

The nascent airline has reportedly placed a substantial portion of its newly recruited staff on indefinite unpaid leave.

This drastic measure follows prolonged delays in securing its Air Operator Certificate (AOC) from the Directorate General of Civil Aviation (DGCA), which has pushed the airline’s commercial launch well beyond its original 2024 targets.

The Regulatory Roadblock for Alhind Air

Alhind Air initially made headlines with its ambitious plan to disrupt the regional aviation market, focusing heavily on connecting South India with West Asia.

However, the path to becoming a scheduled commuter airline has proven more complex than anticipated.

To receive an AOC, an airline must demonstrate operational readiness, which includes having aircraft on the ground, trained crew, and rigorous safety manuals.

Industry sources indicate that while Alhind Air received its No Objection Certificate (NOC) from the Ministry of Civil Aviation earlier this year, the final stages of DGCA approval have stalled.

The primary bottleneck appears to be the finalization of aircraft leasing agreements.

Without physical aircraft registered in India, the DGCA cannot conduct the necessary proving flights required for the final certification.

Impact on Human Capital

The decision to implement “Leave Without Pay” (LWP) has sent shockwaves through the aviation community.

The airline had embarked on a massive hiring drive over the past twelve months, recruiting experienced pilots, cabin crew, and ground staff—many of whom left stable positions at established carriers to join the startup.

The impacted employees now face a period of extreme financial uncertainty.

In internal communications, the management cited the mounting “pre-operative costs” and the lack of a definitive timeline for the AOC as the primary reasons for the move.

While the company has promised to reinstate staff once the license is granted, the lack of a “join-back” date has led to concerns regarding a potential brain drain, as specialized talent may seek opportunities with expanding carriers like Air India or IndiGo.

Alhind Air Fleet and Strategy in Limbo

Alhind Air’s business model relied on a fleet of ATR-72 aircraft to serve regional routes under the UDAN scheme, alongside plans for narrow-body jets for international operations.

The Alhind Group, which already commands a massive share of the travel agency market in the GCC (Gulf Cooperation Council) region, intended to leverage its existing customer base to ensure high load factors.

The current delay, however, is costing the group dearly.

The aviation sector is currently facing a global shortage of aircraft and engines, meaning any delay in finalizing leases could push Alhind Air further back in the queue, potentially delaying the launch into late 2026.

Management’s Stance and Future Outlook

Despite the current crisis, Alhind Group leadership remains officially committed to the project.

They maintain that the unpaid leave is a “temporary fiscal adjustment” to ensure the long-term viability of the airline.

The group is reportedly in talks with new lessors and is working closely with the DGCA to satisfy the remaining regulatory technicalities.

Analysts suggest that Alhind Air’s struggle highlights the immense entry barriers in the Indian aviation market, where high fuel taxes, infrastructure constraints, and stringent regulatory oversight can deplete the capital of even the most well-funded startups.

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