As India’s regional aviation market expands beyond metros under the government’s UDAN regional connectivity scheme, Star Air is betting on underserved Tier-2 and Tier-3 routes, steady Embraer fleet expansion and long-term demand growth.
Captain Simran Singh Tiwana CEO, Star Air speaks to Akbar Merchant about passenger growth, profitability, regional connectivity, fleet plans, policy support, MRO ambitions and the outlook for India’s regional aviation sector.
Q: Star Air has expanded rapidly in recent years. How has passenger traffic grown?
We have seen steady growth as our regional network expanded. In FY2025, Star Air carried over 6.7 lakh passengers, reflecting rising demand for reliable connectivity between Tier-2 and Tier-3 cities. This momentum continued in FY2026, with passenger traffic increasing to around 9 lakh passengers.
Q: How did the airline perform financially in FY26 and what is the outlook for FY27?
In FY2026, we maintained healthy operating performance and improved profitability, supported by disciplined capacity deployment, network expansion and strong regional demand. We remained EBITDA positive while balancing growth and operational sustainability. For FY2027, our focus will remain on strengthening regional connectivity, optimising yields and expanding sustainably in line with market opportunities under the UDAN framework.
Q: What does Star Air’s fleet roadmap look like?
We currently operate eight Embraer ERJ-175 aircraft, all on operating lease, which gives us flexibility to scale operations as demand evolves. While global supply chain disruptions linked to the West Asia conflict may affect timelines, we remain committed to steady and sustainable fleet expansion over the next 2–5 years.
Q: Will future fleet expansion continue to focus on Embraer aircraft?
Yes. Our immediate focus remains on expanding with the Embraer platform, which offers the right balance of efficiency, capacity and flexibility for regional connectivity. The aircraft aligns well with our strategy of connecting underserved Tier-2 and Tier-3 cities while operating efficiently on thinner routes. We continue to work towards our long-term target of scaling to 40–50 aircraft by 2030.
Q: Which destinations and routes are currently part of Star Air’s network?
We currently serve 32 destinations across India with a strong focus on regional connectivity. We are also evaluating restarting services to Bidar and Kalaburagi while remaining optimistic about launching flights to Mundra once airport infrastructure is ready.
Q: Are UDAN routes commercially viable today?
Viability differs from market to market. Government support through viability gap funding remains important during the initial growth phase, especially in developing regional markets. However, several routes have matured well over time. Ahmedabad–Purnea, for instance, has demonstrated how regional connectivity can stimulate new traffic and unlock underserved markets, while sectors like Jamnagar–Surat continue to face strong competition from railways.
Q: What reforms would you like to see in the UDAN scheme?
One important reform would be extending viability gap funding support from three years to five years, as passenger demand in many regional markets takes longer to mature. We also believe the framework around exclusivity on regional sectors could be revisited to ensure a more balanced competitive environment for smaller regional carriers.
Q: What policy interventions are needed for India’s aviation sector?
Reducing ATF-related taxes and rationalising airport charges would significantly improve route sustainability, especially for regional airlines. The industry would also benefit from a more agile policy framework, since aviation costs such as fuel prices can fluctuate rapidly within a quarter.
Q: How is Star Air managing crew and hiring as operations expand?
We currently employ over 1,500 people, including more than 100 pilots and 100 cabin crew members. Network expansion is closely aligned with crew hiring and training plans to ensure balanced rostering, regulatory compliance and operational reliability. Since most flights operate during daytime hours, crew utilisation remains within planned limits.
Q: Which routes are currently performing the strongest for Star Air?
Some of our best-performing routes are within the UDAN network, especially Kishangarh, Purnea and Nanded, which continue to deliver strong load factors and yields. Our Nanded operations have been especially meaningful as we remain the sole operator on the sector since 2024.
Q: What is the progress on Star Air’s MRO plans?
We are actively exploring local MRO capabilities for Embraer aircraft in India. A local MRO facility would reduce maintenance turnaround time, lower costs and improve fleet availability while strengthening regional jet maintenance infrastructure in the country.
Q: What is your outlook for regional aviation in India over the next five years?
We believe regional aviation is poised for strong growth, supported by rising incomes, airport infrastructure development and policy support through UDAN. As more airports become operational and demand rises from smaller cities, regional air travel will play a much bigger role in connecting emerging economic centres. Star Air aims to strengthen its position by expanding its network, increasing frequencies and steadily growing its fleet.