Star Air Plans 40-Aircraft Embraer Order to Expand Fleet by 2030

Star Air Eyes Major Fleet Expansion with Potential 40-Aircraft Embraer Order

Star Air, the aviation arm of the Sanjay Ghodawat Group (SGG), is reportedly in the advanced planning stages of a significant fleet expansion that could reshape regional connectivity across India. According to recent industry reports, the airline is eyeing a new order for approximately 40 Embraer aircraft. This strategic move is designed to propel the carrier from a niche regional player to a substantial national connector, targeting a fleet size of roughly 50 aircraft by the year 2030.

This ambitious growth trajectory marks a pivotal shift for the airline, which currently operates a modest fleet of 11 aircraft. The expansion plan is not merely aspirational; it is supported by concrete financial developments. For the first time in its history, Star Air has sought and secured external capital, validating its business model to the broader investment community. This influx of funds is expected to fuel the acquisition of new assets and the development of supporting infrastructure.

The timing of this potential order aligns with the broader maturation of the Indian aviation market, particularly in the regional sector. By focusing on Tier-2 and Tier-3 cities often bypassed by larger carriers, Star Air has carved out a profitable niche. We observe that this expansion is heavily influenced by the government’s UDAN (Ude Desh ka Aam Nagrik) scheme, which incentivizes connectivity to underserved airports, providing a stable foundation for the airline’s aggressive growth strategy.

Strategic Capital and Fleet Composition

To support this massive scaling of operations, Star Air successfully raised ₹150 crore (approximately $18 million) in November 2025. This capital injection represents the first tranche of a planned ₹350 crore Series B funding round. Notably, this round attracted marquee investors, including Micro Labs Limited, a pharmaceutical major, and Deepak Agarwal, the promoter of Bikaji Foods. Prior to this, the airline was fully funded by its parent company, the Sanjay Ghodawat Group. The transition to external funding indicates a maturing corporate structure and high investor confidence in the airline’s operational efficiency.

The capital raised is earmarked for specific strategic pillars: fleet expansion through deposits and leases, the broadening of the route network, and the establishment of in-house MRO capabilities. Developing internal MRO facilities is a critical step for any growing airline, as it significantly reduces long-term operational costs and ensures higher aircraft availability. This vertical integration suggests that Star Air is planning for sustainable, long-term operations rather than short-term market capture.

Regarding the hardware, the potential order for 40 aircraft is expected to be finalized or placed in 2026, with deliveries staggered to meet the 2030 target. Industry analysis suggests the order will likely include more Embraer E175 jets, which the airline currently operates with success. Furthermore, there is strong speculation regarding the inclusion of the newer Embraer E190-E2 or E195-E2 jets. Embraer has been aggressively pitching these “Profit Hunter” E2 series aircraft to Indian carriers, citing their fuel efficiency and lower seat costs as ideal solutions for the price-sensitive regional market.

“This fundraise brings us closer to our vision of building a comprehensive aviation platform spanning airline operations, NSOP services, MRO facilities, cargo, and aviation training.”, Shrenik Ghodawat, Managing Director, Sanjay Ghodawat Group

The Regional Advantage and Operational Model

Star Air’s operational philosophy differs significantly from the dominant low-cost carriers in India, such as IndiGo or the Air India group. While major carriers focus on high-volume trunk routes connecting metropolitan hubs like Delhi and Mumbai, Star Air targets “thin” routes. These are connections between smaller cities, such as Hubballi, Kishangarh, Jamnagar, and Kolhapur, and major metros. By utilizing aircraft with 50 to 76 seats, the airline can achieve break-even load factors with fewer passengers, a feat that is mathematically impossible for competitors flying 180-seat Airbus A320s or Boeing 737s on the same routes.

The backbone of this strategy is the government’s UDAN scheme, which provides viability gap funding and route exclusivity for a fixed period. This subsidy structure mitigates the financial risk of opening new routes and protects the airline from immediate competition. While other regional carriers like TruJet and Air Costa have struggled or ceased operations, Star Air has maintained profitability by adhering to a disciplined cost structure and matching capacity strictly to demand. The decision to stick with Embraer aircraft further consolidates this advantage, as these jets are capable of landing on the shorter runways common in smaller Indian towns, opening up destinations inaccessible to larger narrow-body jets.

However, this rapid expansion is not without challenges. The global aviation industry is currently grappling with severe Supply-Chain constraints, particularly regarding engine parts and aircraft deliveries. If Star Air opts for the E2 series, they will need to navigate the availability of Pratt & Whitney engines, which have faced global scrutiny for supply delays. Additionally, tripling the fleet size necessitates a massive recruitment drive. Finding and training skilled pilots and technicians to man 50 aircraft by 2030 will be a logistical hurdle in a market already facing a shortage of qualified aviation personnel.

“As we progress toward our 50-aircraft goal by 2030, our focus remains on maintaining operational excellence, safety, and delivering a seamless experience for our customers.”, Captain Simran Singh Tiwana, CEO, Star Air

Concluding Section

Star Air’s move to acquire approximately 40 new Embraer aircraft signals a vote of confidence in the future of India’s regional aviation sector. By securing external funding and committing to a specific fleet type that matches the unique demands of Tier-2 and Tier-3 connectivity, the airline is positioning itself as a critical link in the national transport grid. If successful, this expansion will not only quadruple the airline’s capacity but also enhance economic mobility for smaller Indian cities.

Looking ahead, the execution of this order and the subsequent integration of new aircraft will be the true test of the airline’s management. Balancing rapid growth with operational reliability, while navigating global supply chain volatilities, will determine if Star Air can transition from a successful niche player to a major national airline. As the order is expected to be finalized in 2026, the industry will be watching closely to see how this ambitious roadmap unfolds.

FAQ

Question: How many aircraft does Star Air plan to order?
Answer: Star Air is in the planning stages for an order of approximately 40 Embraer aircraft to reach a target fleet size of 50 by 2030.

Question: Who are the new investors in Star Air?
Answer: In its recent Series B funding round, Star Air raised capital from investors including Micro Labs Limited and Deepak Agarwal, the promoter of Bikaji Foods.

Question: What aircraft types does Star Air currently operate?
Answer: As of late 2025, Star Air operates a fleet of 11 aircraft, consisting of Embraer ERJ-145s and Embraer E175s.

Sources

Air Data News