South India back on aviation runway with new airlines, eVTOL plans

New airlines and eVTOL startups plan regional and electric takeoffs

aviation, aeroplane, flights, airport — A new wave of airlines and electric aircraft startups is reviving South India’s aviation ecosystem, with multiple carriers aiming to take off by mid-2026.

5 min read Last Updated : Jan 04 2026 | 11:47 PM IST

In the early 1990s, when India opened its skies to the private sector, the first airline to become operational was Thiruvananthapuram-based East-West Airlines. Over the years, South India witnessed the rise and fade-out of several carriers — including Kingfisher Airlines, Air Deccan, Air Pegasus, Air Carnival, Paramount Airways, and TruJet — with the region’s airlines losing their prominence on the aviation map.

However, in late December 2025, when Union Minister of Civil Aviation K Ram Mohan Naidu announced that Kerala-based AlHind Air and Hyderabad-based FlyExpress had received no-objection certificates (NOCs) from his ministry, it injected momentum into a new wave of aviation firms emerging from South India. Others include a Mysore-based aviation venture by medical technology (medtech) major Skanray Technologies and another Kerala-based carrier, Air Kerala. When Business Standard contacted them, officials from AlHind Air and Skanray said they hope to begin operations by mid-2026.

The region is also seeing a surge of electric aircraft startups, including Chennai-based The ePlane Company (electric vertical takeoff and landing, or eVTOL, air taxis), Hyderabad-based BluJ Aerospace (hydrogen eVTOLs), and Bengaluru-based Sarla-Aviation. Most of these firms expect to begin operations within six months to a year, pointing to a renewed phase for South Indian aviation.

A senior leader at AlHind Air told Business Standard the airline is likely to launch within six months. “We are in the process of acquiring aircraft and securing an air operator’s certificate (AOC). Kochi will be our hub, and initially we plan to operate services to nearby airports such as Mangalore, Thiruvananthapuram, Calicut, Bengaluru, Mandakalli (Mysore), and Chennai,” said Noorudhin Ahamed, a senior executive with the AlHind group.

An AOC is the formal approval issued by the Directorate General of Civil Aviation, authorising a company to conduct commercial air transport operations. AlHind will begin with a fleet of ATR 72-600 aircraft, focusing on domestic routes. The group, which started as a travel and tour operator in 1992, claims a turnover of ₹20,000 crore and a customer base of 1 million, according to its website.

FlyExpress is reportedly backed by promoters with experience in logistics, courier, and cargo operations. The airline is expected to begin operations this year, with a focus on Tier-II and Tier-III cities.

Another entrant, Skanray, is in the process of securing an NOC. Skanray is a major player in the medtech sector, supplying products in radiology and critical care, with manufacturing and research and development facilities across seven countries.

During the Covid-19 pandemic, the company created a record by delivering 42,000 advanced intensive care unit ventilators across India within eight weeks. “We plan to be operational by April–May this year and have applied for the licence. We intend to start with three ATR 72 aircraft operating from Mysore to Hyderabad, Goa, Mangalore, Kochi, Chennai, Tirupati, and Mumbai, before expanding to six aircraft within a year,” Vishwaprasad Alva, managing director of Skanray, told Business Standard.

“Aviation has become more viable with UDAN (Ude Desh ka Aam Nagrik). We plan to operate three aircraft for 10 hours each. We have established a network and are also exploring a European partnership. Mysore will be our hub for regional connectivity, and in the next phase, Andhra Pradesh will serve as the hub for national routes,” he said. The company is looking at an initial investment of ₹150–200 crore.

Air Kerala, backed by Dubai-based Zettfly Aviation, has also received an NOC from the government. The airline plans to deploy three ATR 72-600 aircraft on short- and medium-haul domestic routes, with Kochi as its hub, before expanding internationally.

Among existing domestic airlines, Star Air is headquartered in Bengaluru, while Fly91 is based in Goa, representing the region.

Several eVTOL companies are also in advanced stages of development. Last week, Sarla-Aviation announced the start of ground testing for SYL-X1 — its flagship eVTOL demonstrator — at its Bengaluru facility. The ePlane Company is also working towards launching electric flying taxis for passengers in the second half of this year.

“Our focus has never been on being first, but on building something that lasts — an aviation platform that can be certified, produced, and safely operated, and that is designed and owned in India. Our goal is to take this new era of aviation technology across the finish line for India and bring it home,” said Rakesh Gaonkar, cofounder and chief technology officer at Sarla-Aviation.