The Ministry of Civil Aviation disclosed to Parliament that 11 airlines have ceased operations in India since 2016, citing financial stress, aircraft unavailability, and internal issues as primary reasons. This information was revealed in the Rajya Sabha in response to a query by Trinamool Congress MP Saket Gokhale. The ministry emphasized that airlines make decisions based on commercial factors in a deregulated environment, with the government refraining from intervening in their financial or operational choices.
The government’s focus lies on providing policy-level support to the aviation sector, which includes enhancing airport infrastructure, streamlining traffic rights, aiding airlines in fleet expansion, and promoting regional connectivity through the UDAN Scheme. Additionally, efforts are being made to enhance the ease of doing business in aviation by simplifying procedures, deregulating, and increasing e-governance usage.
Structural changes within the industry were also highlighted, with AirAsia India, now AIX Connect, merging with Air India Express, and Vistara being integrated into Air India. Regarding outstanding dues, the ministry revealed that grounded airlines have varying liabilities towards the Airports Authority of India, with Kingfisher Airlines having dues of Rs 380.51 crore, including principal and interest amounts.
The ministry informed that Jet Airways and Go First do not owe any outstanding dues to the Airports Authority of India, while TruJet has a minimal pending amount. It reiterated the government’s role in establishing a supportive policy framework, emphasizing that the success or failure of airlines primarily hinges on market conditions and business decisions.
