1 / 17Mergers, acquisitions, and closures. Indian aviation has witnessed a substantial churn between 2006 and 2024. Around ten airlines in India have gone belly-up over the period, and five have been acquired by competitors. Several high-profile airline buyouts and mergers reflect the challenges the highly competitive aviation industry continues to face. Call it consolidation or call it a shake-up, these mergers were often aimed at strengthening the position of the surviving brands, addressing their financial difficulties and increasing their market share. (Image: Reuters)
2 / 17While multiple full-service and low-cost carriers have struggled with rising fuel Aviation Turbine Fuel (ATF), high operating costs, and intense price competition. The COVID-19 pandemic strained finances, with many airlines having to seek government bailouts or shutter down. Experts say India’s aviation sector faces some of the highest operating costs in the world, including fuel taxes, airport charges, and aircraft leasing costs. Supply chain constraints have hurt the fleet expansion and capacity addition plans of airlines further straining their finances. Take a look some of the mergers in Indian skies. (Image: Reuters)
3 / 17No 1. Airlines: Indian Airlines with Air India | Year: 2007 | The merger of the then state-owned Indian Airlines with Air India was part of a move to create a national carrier capable of competing on the global stage. However, the merger led to significant operational and financial challenges, including bureaucratic hurdles, redundancies, and cultural mismatches within the two organisations. (Image: Reuters)
4 / 17No 2. Airlines: Air Sahara with Jet Airways | Year: 2007 | In one of the most high-profile acquisitions, Jet Airways took over Air Sahara in a second buyout attempt. However, the merger did not result in long-term success for Jet Airways, which eventually shut down in 2019 due to financial difficulties. This also marked the closure of the subsidiary JetLite (erstwhile Air Sahara). The Supreme Court on October 7, 2024 ordered for liquidation of Jet Airways. (Image: Reuters)
5 / 17No 3. Airlines: Air Deccan with Kingfisher Airlines | Year: 2007 | Kingfisher Airlines acquired low-cost carrier Air Deccan, marking a shift towards premium offerings. Kingfisher's rapid expansion, however, was unsustainable, leading to its eventual shutdown in 2012 and with that of Air Deccan, which was renamed as Kingfisher Red, as well. (Image: Reuters)
6 / 17No 4. AirAsia India with Air India Express | Year: 2024 | The merger of AirAsia India, which was renamed as AIX Connect, with Air India Express marked the increasing consolidation in the low-cost carrier market. This was part of efforts to streamline operations under the larger Air India Group umbrella, after the acquisition of the Government run airline Air India along with its international budget subsidiary Air India Express by the Tata Group.
7 / 17No 5. Airlines: Vistara with Air India | Year: 2024 | The merger of Vistara, a joint venture between Tata Group and Singapore Airlines, with Air India signalled the expansion of the Tata Group in Indian aviation. Vistara posted losses for all fiscal years ever since its inception. Announcing the decision to merge Vistara with Air India, Singapore Airlines, which will hold 25.1 per cent stake in Air India, had said it was finding difficult for Vistara to continue to function as an independent brand in India and that the merger was the best way forward. Below are major airlines that had to cease operations due to a mix of financial difficulties, poor management, and market conditions.
8 / 17No 6. Carrier: Kingfisher Airlines | Year: 2012 | Kingfisher Airlines, once a high-flying premium carrier, shut down due to mounting debts, mismanagement, and poor financial health. Despite a successful start, the airline failed to sustain its operations, and its bankruptcy marked a significant collapse in the Indian aviation sector.
9 / 17No 7. Carrier: GoFirst | Year: 2023 | GoFirst (formerly GoAir), a low-cost carrier, filed for bankruptcy in 2023 after struggling with financial difficulties exacerbated by the Pratt & Whitney engine supply issues which grounded half of its fleet. The airline’s operations were grounded, and it faced mounting debts, leading to its grounding.
10 / 17No 8. Carrier: Jet Airways | Year: 2019 | Once the largest private airline in India, Jet Airways suspended its operations in April 2019 due to a severe liquidity crisis. The airline had failed to secure funding and went into bankruptcy proceedings. Its closure represented a huge blow to India's aviation market, as Jet Airways had been a major player for nearly 25 years with a large fleet and over 16,000 employees. Below are regional carriers that shut operations shut operations due to financial pressures, regulatory challenges, and competition from larger players.
11 / 17No 9. Carrier: Paramount Airways | Year: 2010 | Paramount Airways, a regional carrier, ceased operations after failing to achieve profitability and struggling with the high costs of running a full-service airline.
12 / 17No 10. Carrier: Air Costa | Year: 2017 | A regional airline focused on South India, Air Costa struggled with financial sustainability and halted operations in 2017 after facing mounting losses.
13 / 17No 11. Carrier: Air Pegasus | Year: 2016 | Another regional carrier based in South India, Air Pegasus suspended its operations in 2016 due to financial constraints and the inability to maintain a sustainable business model.
14 / 17No 12. Carrier: Air Carnival | Year: 2017 | Based in Chennai, Air Carnival was a regional carrier that began operations in 2015. It faced challenges such as low capacity, financial constraints, and competition from larger airlines, leading to its shutdown within a year.
15 / 17No 13. Carrier: Mantra | Year: 2017 | Mantra, a regional airline that operated on the South and West Indian routes, failed to overcome market challenges and ceased operations due to financial difficulties.
16 / 17No 14. Carrier: TruJet | Year 2023 | TruJet, a regional airline operating in the southern part of India, struggled to scale up its operations and eventually ceased flying in 2023 after failing to recover after the COVID-19 pandemic.
17 / 17No 15. Carrier: Air Odisha | Year: 2021 | A regional airline serving smaller cities in India, Air Odisha suspended its operations due to financial difficulties exacerbated by the pandemic.
