Kochi-based start-up airline Alhind Air, which recently received a no-objection certificate (NOC) from the civil aviation ministry, has placed a large number of its employees on a “no work, no pay” basis on the pretext of delays in securing its Air Operator Certificate (AOC) from the Directorate General of Civil Aviation (DGCA).
Around 120 employees have been issued a formal notice informing them that they will be placed on leave without pay until further notice, effective November 15, 2025, according to internal communication reviewed by Fe. The airline needs final regulatory clearance from the DGCA in the form of AOC before it can commence commercial flight operations.
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Financial Strain and Regulatory Roadblocks
In the letter to the employees, the airline has said that prolonged delays in obtaining regulatory approvals, including the AOC, have put significant pressure on its finances. It has noted that its monthly expenses, including employee salaries, are about Rs 2 crore, resulting in “substantial financial losses” and making it “increasingly difficult” to sustain operations.
“Despite our best efforts, the company has not been able to achieve the desired results, and the survival of the establishment has become increasingly difficult,” the letter said.
Employees were informed that they should not report to work after November 15 and would be notified once the AOC approval is received. The letter also directed employees to hand over any company assets in their possession to the human resources department immediately.
The communication added that staff had been verbally informed of the decision earlier in November, and that the written notice was issued after some employees sought official confirmation.
From Preliminary Approval to Operational Reality
The NOC granted by the government is a preliminary approval that allows an airline to move ahead with preparatory work but does not permit it to start flying. The AOC process involves multiple stages, including aircraft induction, crew training, compliance audits and demonstration flights, and timelines can vary depending on readiness and regulatory scrutiny.
Promoted by the Alhind Group, Alhind Air has been planning to enter the Indian aviation market as a scheduled carrier, with Kochi as its base and domestic operations in the initial phase. The airline has indicated that it intends to build a regional network before expanding further.
Queries sent to Alhind Air seeking clarity on its AOC timeline, fleet plans, launch schedule and the status of employee compensation remained unanswered till the time of going to the press. Solomon David, HR head and the signatory to the letter was not reachable on phone and did not respond to whatsApp message till the time of going to the press.