New Delhi, March 23 – The Ministry of Civil Aviation informed Parliament on Monday that a total of 11 airlines have shut down operations in India since 2016, primarily due to financial difficulties, a lack of aircraft availability, and internal issues.
The information was shared in the Rajya Sabha in response to a question by Trinamool Congress MP Saket Gokhale.
In its written reply, the ministry stated that while the government is committed to building a strong and balanced aviation sector, airlines operate in a deregulated environment and make decisions based on commercial considerations.
The ministry clarified that the government does not interfere in the financial or operational decisions of airlines.
Instead, it focuses on policy-level support. This includes expanding airport infrastructure, rationalizing traffic rights, helping airlines add more aircraft, and boosting regional connectivity through the UDAN Scheme.
It also highlighted efforts to improve ease of doing business in the aviation sector through simplified procedures, deregulation, and increased use of e-governance.
The ministry further noted structural changes within the industry. It said AirAsia India, now known as AIX Connect, has merged with Air India Express. Similarly, Vistara has been merged into Air India.
On the issue of outstanding dues, the ministry informed that grounded airlines have varying liabilities towards the Airports Authority of India.
Kingfisher Airlines alone has dues of Rs 380.51 crore, which includes Rs 175.30 crore as principal and Rs 205.11 crore as interest.
The claim has been filed with the official liquidator in Bengaluru. Meanwhile, TruJet has a pending amount of just Rs 0.03 crore.
The ministry said that Jet Airways and Go First currently have no outstanding dues to pay to the Airports Authority of India.
The government reiterated that its role is to create a supportive policy framework, while the success or failure of airlines depends largely on market conditions and business decisions.
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