The Indian aviation sector has seen significant churn, with 11 airlines exiting the market since 2016 due to financial stress, aircraft shortages, and internal challenges, the government informed Parliament.
Minister of State for Civil Aviation Murlidhar Mohol stated that the aviation industry operates in a deregulated environment where airlines function based on commercial viability. The government’s role, he noted, is to maintain overall balance and stability in the sector.
The statement also highlighted ongoing consolidation trends. AirAsia India (now AIX Connect) has merged with Air India Express, while Vistara—a joint venture of Tata Sons and Singapore Airlines—has been absorbed into Air India. These mergers reflect efforts to streamline operations and strengthen competitiveness.
On pending dues, the government noted that Kingfisher Airlines, which ceased operations in 2012, still owes INR 380.51 crore to the Airports Authority of India (AAI). The claim has been filed with the official liquidator in Bengaluru.
Meanwhile, smaller dues remain from TruJet, while defunct carriers like Jet Airways and Go First reportedly have no outstanding dues to AAI.
Overall, the data underscores the challenges in India’s aviation industry—high operating costs, intense competition, and operational constraints—while also reflecting a shift toward consolidation and stronger airline groups.
