Struggles in the Indian airline industry: ModiLuft to Jet Airways

Several airlines in India have failed in recent years, and Go First is just one of them. Filing for insolvency proceedings before NCLT, these airlines have either collapsed or been sold due to financial struggles, debt, and mismanagement. The private aviation industry in India has always been challenging due to factors such as high costs, low profitability, intense competition, and a lack of scale. Let’s take a look at some of the airlines that have struggled to stay afloat in the Indian aviation industry.

Vayudoot

The regional airline Vayudoot operated in India from 1981 to 1997 but encountered financial difficulties that led to its closure. The airline’s problems were caused by insufficient infrastructure and a lack of support from the government, resulting in mounting losses.

ModiLuft

ModiLuft, established by the Modi group, a major Indian conglomerate, operated both domestic and international flights using a fleet of Boeing 737 aircraft. Despite this, the airline could not survive the cut-throat competition in the Indian aviation market, and it had to shut down in 1996 due to financial difficulties.

Damania Airways

Damania Airways, founded in 1993 by the prominent Damania family, also operated both domestic and international flights and had a fleet of Boeing 737 aircraft. Unfortunately, the airline faced financial problems due to high fuel prices and stiff competition in the Indian aviation industry. As a result, the UB Group purchased Damania Airways and later established Kingfisher Airlines.

East-West Airlines

Between 1992 and 1996, East-West Airlines provided both domestic and international flights with its fleet of Boeing 737 aircraft. This Kolkata-based airline, however, suffered from financial difficulties due to mismanagement, leading to its closure in 1996.

NEPC Airlines

NEPC Airlines, which was based in Chennai, operated both domestic and international flights using Boeing 737 and Fokker aircraft between 1993 and 1997. Unfortunately, the airline encountered financial issues as well, resulting in its shutdown in 1997.

Air Sahara

Air Sahara, established in 1993, was headquartered in New Delhi and offered both domestic and international flights. The airline’s fleet comprised Boeing 737 and Embraer aircraft. Nevertheless, Air Sahara encountered financial problems due to the intense competition in the Indian aviation market. In 2007, the airline was sold to Jet Airways.

Jet Airways

Jet Airways, one of the biggest airlines in India, began as an air taxi operator and started its flights in 1995. Unfortunately, in 2019, the airline halted its operations because of a debt crisis that had been building up for years. The airline’s financial troubles had accumulated debts that it could not repay, leaving thousands of passengers stranded when its operations were suspended.

Kingfisher Airlines

Indian billionaire Vijay Mallya founded Kingfisher Airlines in 2005. The airline operated both domestic and international flights with a fleet of Airbus A320 and ATR aircraft. However, mismanagement and high levels of debt caused financial difficulties for the airline. As a result, it halted operations in 2012 and officially shut down in 2014 after failing to repay its debts.

Air Deccan

Air Deccan was India’s first low-cost airline when it launched in 2003. It operated both domestic and international flights using Airbus A320 and ATR aircraft. However, intense competition in the Indian aviation market led to financial problems for the airline. Kingfisher Airlines acquired Air Deccan in 2007, and it ceased operations that same year.

Paramount Airways

Having been established in 2005, Paramount Airways operated both domestic and international flights. The airline, headquartered in Chennai, had a fleet consisting of Embraer and Boeing 737 aircraft. Despite its promising beginnings, the company struggled with high levels of debt, which eventually resulted in its closure in 2010.

Air Costa

Air Costa was a regional airline operating in India. The company faced financial challenges due to various factors, including high operating costs, intense competition in the market, and low passenger traffic. The airline’s fleet was grounded when it failed to settle its unpaid dues to its lessors, which ultimately led to its collapse.

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