11 Airlines Shut Down Since 2016, Government Tells Parliament

New Delhi, March 2026 : The Ministry of Civil Aviation on Monday informed Parliament that a total of 11 airlines have ceased operations in India since 2016, primarily due to financial stress, shortage of aircraft, and internal management issues.

The information was shared in the Rajya Sabha in response to a query raised by Trinamool Congress MP Saket Gokhale. In its written reply, the ministry emphasised that while the government is committed to building a robust and balanced aviation sector, airlines operate in a deregulated environment and make decisions based on commercial viability.

The ministry clarified that the government does not intervene in the financial or operational matters of airlines. Instead, its role is focused on policy support and sectoral development. Measures undertaken include expansion of airport infrastructure, rationalisation of traffic rights, facilitation of fleet expansion, and promotion of regional air connectivity through the UDAN Scheme.

It also highlighted steps taken to improve the ease of doing business in the aviation sector, including simplified regulatory procedures, deregulation initiatives, and the increased use of e-governance systems to streamline operations.

The ministry further pointed to structural changes within the aviation industry. It noted that AirAsia India, now rebranded as AIX Connect, has been merged with Air India Express. Similarly, Vistara has been integrated into Air India as part of broader consolidation efforts in the sector.

On the issue of financial liabilities, the ministry informed that grounded airlines have varying levels of outstanding dues to the Airports Authority of India. Kingfisher Airlines alone accounts for dues amounting to ₹380.51 crore, including ₹175.30 crore as principal and ₹205.11 crore as interest. The claim has been filed with the official liquidator in Bengaluru.

In comparison, TruJet has minimal outstanding dues of ₹0.03 crore. The ministry also stated that Jet Airways and Go First currently have no pending dues with the Airports Authority of India.

Reiterating its stance, the government said its primary responsibility is to provide a supportive policy framework. However, the success or failure of airlines ultimately depends on market dynamics, operational efficiency, and business decisions taken by the carriers themselves.