India's First Seaplane Service Halted After Lakshadweep Withdraws Approval Days Before Launch

India's ambitious plan to launch its first dedicated seaplane service has been abruptly halted, after the Lakshadweep administration withdrew permission just days before the inaugural flight. The decision has left operator SkyHop Aviation with substantial sunk costs and raised broader questions about risk allocation in the government's regional connectivity push.

SkyHop Aviation received its Air Operator Certificate from the Directorate General of Civil Aviation in April 2026, making it India's first dedicated commercial seaplane operator. The company completed test flights earlier that month, including water take-offs and landings at the Ganga Barrage and Tehri Lake in Uttarakhand.

The operator's launch fleet consists of a 19-seat DHC-6-400 Twin Otter, registered VT-SHE, previously operated by the now-defunct regional carrier flybig. The aircraft was converted to seaplane configuration in India—the first such conversion undertaken in the country .‌‌

On May 13, 2026, SkyHop achieved a historic milestone: the first-ever seaplane landing in Lakshadweep's lagoons. The trial flight from Kochi touched down at Agatti and Kavaratti islands, carrying DGCA representatives to monitor performance and safety standards. The trial was coordinated with the Lakshadweep administration, Airports Authority of India, and Cochin International Airport Limited .‌‌

The company planned to connect five Lakshadweep islands with each other and with the mainland, and had built water jetties at Agatti, Kiltan, and Kavaratti.‌‌

In August 2026, the Lakshadweep administration conveyed its concurrence for operations to commence after the monsoon, designating the Airports Authority of India as the waterdrome operator. The DGCA approved the waterdromes on September 7, clearing the final regulatory hurdle.

Then came the reversal. On September 10, SkyHop was verbally informed that the administrator had declined the service just five days before the scheduled September 16 launch.

In a communication dated September 21 to the AAI, the Lakshadweep administration stated it lacked experience in operating and managing waterdromes and seaplane services, and would not be able to provide assistance. It further stated that all previous communications on the subject should be treated as withdrawn .‌‌

The about-face has left SkyHop in a difficult position. According to sources cited by Times Now, the company had invested approximately ₹100 crore and hired around 100 people, including pilots, crew, and ground staff. These figures come from anonymous sources and have not been independently confirmed by the company.‌

SkyHop has reportedly written to the Prime Minister's Office seeking clarity on the situation. The Ministry of Civil Aviation is now examining the reasons behind the denial, with a senior official stating, "We are examining the issue why this happened".‌‌

The setback underscores persistent challenges in India's efforts to establish seaplane connectivity. The Centre had identified seaplane operations as a key pillar of its UDAN regional connectivity scheme, with approximately 150 seaplane routes planned. The Union Budget 2026-27 proposed a dedicated Seaplane Viability Gap Funding scheme .‌‌‌

SkyHop had outlined ambitious expansion plans, including a partnership with Norway's NOEMI Aerospace to explore electric seaplanes and a target fleet of up to 40 aircraft by FY2030 .‌‌

But this is not India's first attempt at seaplane services. SpiceJet previously operated a route in Gujarat between the Sabarmati Riverfront and the Statue of Unity, but the service was discontinued during the COVID-19 pandemic .‌

"The challenge with remote routes is not just the aircraft or the route it is the entire ecosystem of permissions, water aerodromes, fuel supply and ground handling that needs to come together," a senior aviation official told ET Infra. "A single link in that chain breaking can unravel an entire plan".

For now, SkyHop's Lakshadweep operations remain grounded, its aircraft and crew ready but waiting for a permission that may not come.