NEW DELHI — A total of 11 airlines have shut down operations in India since 2016, largely due to financial stress, aircraft shortages, and internal challenges, the Ministry of Civil Aviation told Parliament on Monday.
The disclosure came in a written reply in the Rajya Sabha to a question from Trinamool Congress MP Saket Gokhale, offering a snapshot of the structural pressures facing India’s aviation industry over the past decade.
The ministry said that while the government remains focused on building a strong and balanced aviation ecosystem, airlines operate in a deregulated environment and make decisions based on commercial considerations. It emphasized that authorities do not intervene in airlines’ financial or operational matters.
Instead, the government’s role is centered on policy support, including expanding airport infrastructure, rationalizing traffic rights, facilitating fleet expansion, and promoting regional air connectivity through the UDAN scheme.
Officials also pointed to ongoing efforts to improve the ease of doing business in the sector through simplified procedures, deregulation, and greater adoption of e-governance systems.
The ministry highlighted consolidation trends within the industry, noting that AirAsia India, now rebranded as AIX Connect, has merged with Air India Express, while Vistara has been integrated into Air India.
On outstanding dues, the ministry said grounded airlines have varying liabilities to the Airports Authority of India. Kingfisher Airlines accounts for the bulk, with total dues of Rs 380.51 crore, including Rs 175.30 crore in principal and Rs 205.11 crore in interest. The claim has been filed with the official liquidator in Bengaluru.
TruJet, by contrast, has a minimal pending amount of Rs 0.03 crore, while Jet Airways and Go First currently have no outstanding dues to the Airports Authority of India.
The government reiterated that its primary responsibility is to provide a supportive policy framework, while the success or failure of airlines ultimately depends on market conditions and business decisions. (Source: IANS)
