I originally wanted to write about airline livery, a mildly interesting topic that you can read up on Wikipedia now. But then Jet Airways, one of my favorite airlines in India, announced its premature death and I couldn't control exploring the history of other airlines in India that have gone under for various specific reasons. Then Santosh Desai shared his opinions on the Jet Airways crisis last week in a TOI column, where I read mentions of defunct airlines like Damania and Archana for the first time, and I think this was called for.
Here's a list of almost all inactive airlines in India, checked and verified a day before publishing. Most of these have been forgotten, with some names not even in my parents' memory (the elder one was born in the 1950s) - all of which makes this a sadistically interesting exercise for me. There are a lot of reasons here why airlines went bust, mostly voluntarily to avoid further disaster, but one common factor is shortage of money due to a common reason of high fuel prices. Reminds me of a time when Germany's Lufthansa said it is difficult to run an airline in India because of the "high cost of operations". Jet will agree. And so will some of these four dozen and more now defunct airlines in India. But there's a hidden reason why some of these companies embraced death. See if you can find that out.
List of Airlines in India and Why They Shut Down
This list of airline graveyard is in alphabetical order. To state the obvious, most airlines permanently stopped their services because of eventual license (Air Operator Permit aka AOP or Air Operator's Certificate or AOC) suspension or cancellation by the Director General of Civil Aviation (DGCA) or suspension by the International Air Transport Association (IATA) which is why I haven't added that as a reason. I have focused on what led to the licence revocation.
Cargo and charter carriers are not included. Those that have been merged or acquired are also not added unless the merged or acquiring entity has ceased operations, except in some notable cases like Tata Airlines and Air Sahara. Suffixes and prefixes like "airlines" and "airways" are mostly not included to allow brevity, unless absolutely needed. You may have to scroll up and down because some of these airline names have direct connections.
- Air Asiatic - Legal hassles involving chairman and managing director K C G Verghese who went on to write an autobiography
- Air Carnival - Unsafe and unreliable service, cash crunch
- Air Costa - Cash crunch
- Air Deccan - Acquired by industrialist Vijay Mallya and renamed as Simplifly Deccan, eventually converted to Kingfisher Red (see Kingfisher below)
- Air Dravida - Cash crunch; shut down the same year it hoped to commence its operations after failing to create a fleet using aircraft from Canadian aerospace firm Bombardier
- Air Mantra - Low seat occupancy
- Air Pegasus - Cash crunch
- Air Services of India - Merged into Indian Airlines
- Airways (India) Limited - Income tax issues; merged into Indian Airlines
- Ambica - Low seat occupancy; legal hassles
- Archana - Heavy financial losses due to low seat occupancy and high cost of operations (with aircraft being returned to the manufacturers against pending dues)
- Bharatair (aka Bharat Airways) - Merged into Indian Airlines
- CityLink - Cash crunch; eventually liquidated
- Cornecon - Unknown
- Cosmos - Unknown
- Darbhanga - Gradual fall of the Darbhanga dynasty of Bihar further triggered by the death of its Maharaja Kameshwar Singh in 1962; DGCA cancelled its licence and one of its fleet (a VIP liner, possibly a Douglas) was taken by the Indian Air Force (IAF)
- Deccan - Operation Polo which resulted in the annexation of the Hyderabad state from the Nizam in 1948, which, in turn, led to its changing hands from the Hyderabad government and Nizam State Railways to the Government of India; one of the eight pre-Independent domestic airlines to be merged and converted into Indian Airlines under the Air Corporations Act (see below)
- East-West - Murder of managing director Thakiyudeen Wahid which added fuel to its financial problems
- Goa Way - Unknown
- Gujarat Airways - Intense competition
- Himalayan Aviation - Merged into Indian Airlines
- Huns Air - Possible heavy competition from Pushpaka Aviation and Air India; a zero-casualty accident during landing of its major flight - a Vickers Viscount 768D - at Vijayawada Airport in Andhra Pradesh on 28 August 1980 which reportedly damaged the aircraft beyond repair; possible consequent financial issues
- Indian Overseas (formerly Mistri Airways) - Cash crunch
- Indian State Air Service - Unknown; possible government voluntary withdrawal
- Indus - Cash crunch; inability to obtain safety-critical Bombardier aircraft parts from General Electric's Commercial Aviation Service (GECAS)
- Irrawaddy Flotilla & Airways - Japanese invasion of Burma in 1942 (during World war II) forced the company's personnel to destroy some of its own fleet (housed in Pazundaung (now in Myanmar)), the rest of which were automatically handed over to the Burmese government in 1948; supposedly the fleet owned by its Chennai division never saw a resurrection as the company went into voluntary liquidation two years later
- Jet - Cash crunch; lack of trust by lenders (mainly SBI)
- Jupiter - Possible competition by national carriers; lack of profitable routes
- Kalinga - Merged into Indian Airlines
- Kingfisher (+Kingfisher Red) - Massive financial losses and eventual cash crunch, probably a precursor to Mallya's fraudulent activities
- Mesco - License withdrawal by DGCA probably by request in 2001; first private helicopter charter company (air taxi) in India and still active in charters and maintenance work
- ModiLuft - Mounting tensions with its technical partner, Germany's Lufthansa; was set to make a comeback as Royal Airways through a different owner; its permit was eventually bought and converted into SpiceJet by entrepreneur Ajay Singh
- Orient - Base transfer from Kolkata (erstwhile Calcutta) to Karachi, Pakistan; requisition by the Pakistan government post Partition of India; in 1955 was merged with the Pakistan International Airlines (PIA)
- Paramount - Legal tussle with lessors of their liners manufactured by Brazilian aerospace firm Embraer; fleet grounding; multiple attempts to restart operations using Airbus and Bombardier aircraft in 2010, and then in 2013, did not materialize as lenders (SBI, again, among others) took its promoters to court (and DGCA) for pending dues and eventually seized the fleet
- Pushpaka Aviation - Financial fallout with Air India, which Pushpaka was an associate of in running international flights between Mumbai and the Persian Gulf in the early 1980s; India Today reported a suspicious revocation of the contract between the parties including DGCA in late June 1983
- Royal Star - Unknown
- Safari - Government's "very anti-private sector" reluctance to issue permits other than for 24-hour non-scheduled ones, as complained by founder and India's "Air Commodore" Vijaypat Singhania; one of the first private aircraft operators in India in the 1970s
- Sahara - Rebranded as Air Sahara; later acquired by Jet, rebranded as JetLite, and then merged with JetKonnect (see Air Sahara and Kingfisher above)
- SpanAir - Grounded in 2014 due to safety violations both inside the cabin and on the ground; it still runs charter services
- Svarima - Unknown
- Tata (aka Tata Air Services) - Became a public limited company post Independence and was thus registered as Air India; while Air India International Limited catered to international flights, Air India (along with Indian Airlines) flew flights domestically as NACIL/Air India Limited; currently operating all flights under the single brand name of Air India
- Vayudoot - Money bleeding due to low seat occupancy; was run by the government
- VIF - Inability to scale up with its single Dornier aircraft
- Vijay - Unknown
- Zoom Air - License suspension by DGCA over safety concerns in 2018; attempts to revive fell through in 2019.
That's a interesting history of airlines in India, isn't it?
A lot of these players entered the commercial aviation market following the Indian government's Open Sky policy in 1992, but soon began to bite the dust due to "high cost of operations", a reason given out by many modern, private players both inside and outside India. Really shows how many businesses aspired to fly high in the world of civil aviation in India and failed. And the small number of airlines active today (GoAir, IndiGo, SpiceJet, Vistara, AirAsia, TruJet, and Air India (Express, Alliance)) is not that encouraging either.
The fact that Jet is trying to revive itself makes me a hopeful man this otherwise dull pre- election-day Sunday. TN.
...stuff that stars are made of!
