Despite being in the third-largest and one of the fastest growing markets in the world, many Indian airlines keep failing and collapsing in India.
NEPC Airlines, Damania Airways, Jet Airways, Kingfisher Airlines, Deccan Aviation and Paramount Airways have one thing in common. These airlines and several others took off fast only to crash land or get bought out by others.
These airlines collapsed or were sold due to financial crunch, debt, and mismanagement. Go First is the latest victim of the unforgiving Indian aviation market. Here are some of the airlines that couldn’t keep flying high in the Indian skies:
Vayudoot (1981-1997)
Vayudoot ('messenger who rides on the wind') was a regional airline in India established on 20 January 1981 as a joint venture between the two state-owned carriers, Indian Airlines and Air India. The airline was headquartered at New Delhi's Safdarjung Airport. The airline was originally conceived to serve the Northeastern region of India.
The airline consistently lost money since its formation due to low occupancy. The government, struggling to find a solution to Vayudoot's continuing financial problems, considered both closure and privatisation as options as the carrier's route and fleet structure made the operation unprofitable.
ModiLuft (1993-1996)
Based in Delhi, ModiLuft was launched in April 1993 by Indian industrialist SK Modi. His strategy was to operate a private airline that benefited from strategic partnerships. German flag carrier Lufthansa was the partner of choice.
However, the airline faced financial troubles due to intense competition in the Indian aviation market and was eventually forced to shut down in 1996.
Damania Airways (1993-1997)
Damania Airways was founded in 1992 and began flying on March 10, 1993, with two Boeing 737 aircraft leased from TAP Air of Portugal. With its base in Bombay (now Mumbai), the airline had regular flights to Delhi, Calcutta, Madras, Bangalore, Goa, and Indore. An additional two aircraft were leased later. In 1997 Damania Airways ceased its operations.
East-West Airlines (1992-1996)
One of the first private companies to obtain an Air Operator Permit (AOP) from India’s aviation regulators was East-West Airlines. Headquartered in Trivandrum, it was the first national-level private airline in India to operate after almost 37 years.
The airline began operations in early 1992 and established offices in Trivandrum, New Delhi, Madras (now named Chennai), and Mumbai. Its fleet first consisted of three Boeing 737-200s, and in 1992, East West acquired four additional -200s, totalling seven Boeing 737s.
However, it faced financial troubles due to mismanagement and was eventually shut down in 1996.
NEPC Airlines (1993-1997)
NEPC Airlines was founded in 1993 and operated both domestic and international flights. The airline had a fleet of Boeing 737 and Fokker aircraft and was based in Chennai. However, the airline faced financial troubles due to mismanagement and was eventually shut down in 1997.
Air Sahara (1993-2007)
Air Sahara was once a rapidly-growing Indian airline, with strong domestic operations and expanding international routes. The airline was almost exclusively a Boeing 737 carrier, starting from the -200 and moving to the -800. Air Sahara was founded in 1991 and made its inaugural flights in late 1993.
However, it faced financial troubles due to intense competition in the Indian aviation market and was eventually sold to Jet Airways in 2007.
Jet Airways (1993-2019)
Jet Airways, one of India's largest airlines, commenced operations as an air taxi operator. In 1995, it started its flights. However, in 2019, it ceased operations due to a debt crisis.
Jet Airways was the second-largest commercial passenger airline and enjoyed a market share of 17.8% in Indian aviation before it ceased its operations.
The airline had been struggling with financial difficulties for several years, leading to the accumulation of debt that it was unable to repay. The airline's operations were eventually suspended, leaving thousands of passengers stranded.
Kingfisher Airlines (2005-2012)
Kingfisher Airlines was founded in 2005 by Indian billionaire Vijay Mallya. The airline operated both domestic and international flights and had a fleet of Airbus A320 and ATR aircraft.
Kingfisher Airlines (KFA), which used to enjoy the second-largest market share in Indian aviation, ceased its operations in 2012. It ran aground as losses and debt kept piling on.
However, it faced financial troubles due to high levels of debt and mismanagement. The airline stopped operations in 2012 and officially shut down in 2014 after it failed to repay its debts.
Air Deccan (2003-2007)
Air Deccan was an Indian regional airline based out of Ahmedabad, Gujarat. Its route network was small, with only four destinations: Ahmedabad, Bhavnagar, Diu, and Mundra.
The fleet was also small and consisted of Beech 1900D aircraft formerly flown by an Air New Zealand subsidiary. Air Deccan served cities with little to no air service and minimal competition with major airlines. Things did not go as planned during its inaugural flight in 2003, which carried Indian dignitaries. Unfortunately, an engine fire during a taxi grounded that oh-so-important flight.
Air Deccan was founded in 2003 as India's first low-cost airline. It operated both domestic and international flights and had a fleet of Airbus A320 and ATR aircraft. However, the airline faced financial troubles due to intense competition in the Indian aviation market and was eventually sold to Kingfisher Airlines in 2007.
Paramount Airways (2005-2010)
Paramount Airways was founded in 2005 and operated both domestic and international flights. The airline had a fleet of Embraer and Boeing 737 aircraft and was based in Chennai. It faced financial troubles due to high levels of debt and was eventually shut down in 2010.
Air Costa (2013-2017)
Air Costa was an Indian regional airline. It faced financial difficulties due to high operating costs, a competitive market, and low passenger traffic. The airline's fleet was eventually grounded due to unpaid dues to its lessors, leading to its eventual collapse.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
