India has a long list of airlines, mostly low-cost, which have gone bust in the past. More than 15 airlines have shut down in India over the last two decades. They include large and popular ones, such as Indian Airlines, Jet Airways and Kingfisher Airlines, and low-cost carriers such as Air Carnival and Air Pegasus. Wadia Group-owned GoFirst is the latest Indian air carrier to go bankrupt.
On Tuesday, Go Airlines (India) Limited or Go First said it has been “forced” to apply to the National Company Law Tribunal Delhi for resolution and protection under Section 10 of IBC due to the ever-increasing failure of Pratt and Whitney engines that power its fleet.
Here’s a look at the other airlines that went bankrupt before GoFirst due to issues ranging from high operational costs, competition from other airlines to financial troubles.
1. Go First Low-cost carrier Go First on May 2 filed for bankruptcy and suspended its flight operations for the next three days — May 3,4, and 5 — on the back of mounting losses. It attributed its bankruptcy to delays in the delivery of Pratt and Whitney engines, resulting in the grounding of half its fleet of aircraft.
2. Air Sahara
Owned by businessman Subrata Roy of Sahara Parivar, Air Sahara was one of the rapidly-growing airlines with cheaper tickets and wide connectivity in domestic and international routes. The airline was founded in 1991. Its maiden flight was launched in 1993. It began flights using a fleet of two 737-200s, and added the Bombardier CRJ aircraft to its fleet. In 2006, Jet Airways took over all of Air Sahara's assets for $545 million.
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3. Jet Airways
Based out of Mumbai, Jet Airways was the second largest airlines in the country with a market share of 17.8 per cent in its peak years. The country’s oldest private airline shuttered its operations in April 2019 after competing severely with emerging low-cost carriers, such as SpiceJet and IndiGo.
Jet Airways went into an insolvency resolution process afterwards and the Jalan Kalrock Consortium (JKC) emerged as the winning bidder. But the ownership transfer process has been facing blockages for long.
In a statement last week, JKC said CEO-Designate Sanjiv Kapoor quit the bankrupt airline effective May 1 at the conclusion of his notice period.
4. Kingfisher Airlines
Founded by fugitive businessman Dr Vijay Mallya 20 years ago, Kingfisher Airlines started its operations in 2005, and enjoyed a fair amount of market share. It started its operations with its fresh 174-seater A320 aircraft. At its peak, the company owned 24 A320s, eight A321s, and 27 ATR 72 regional units.
But the airlines since its inception reported heavy losses, which led to huge debts for Mallya. It acquired Bangalore-based Air Deccan in 2007, which made its survival even tougher, leading to its closure in 2012.
5. Paramount Airways
Based out of Chennai, Paramount Airways started as an airline catering to business travellers in 2005, and focused on South and East India routes. It was the first airline in India to launch the New Generation Embraer 170/190 Family series aircraft. The company closed its operations in 2010, just five years after its launch, on the back of mounting debts that saw it lose its fleet.
6. Vayudoot Airlines
Founded in 1981, the airlines was a joint venture of state-owned Indian Airlines and Air India. Based out of Delhi’s Safdarjung Airport, the airlines aimed at capturing the northeastern routes of India.
In 1993, its assets were merged with Indian Airlines. In 1997, its flight operations were transferred to Alliance Air, which was a subsidiary of Indian Airlines. The staff was absorbed by Air India and Indian Airlines.
7. Indian Airlines
Based out of Delhi, Indian Airlines was a part of Air India Limited, which focused primarily on domestic routes and a few international services. It was a division of Air India Limited after the merger of eight pre-Independence domestic airlines. It was rebranded as Indian in 2005 for advertising purposes. In 2007, the Centre merged Indian with Air India Limited as its wholly owned subsidiary. As part of the merger process, the Centre formed the National Aviation Company of India Limited, which was later rebranded as Air India Limited. All these subsidiaries are now part of Air India, currently controlled by Tata Sons.
8. Air Pegasus
Bangalore-based Air Pegasus commenced operations in April 2015. It was a subsidiary of an aircraft ground-handling services company, Decor Aviation. But it was a short wonder. It suspended its operations in July 2016 on the back of mounting financial debts and technical issues. The airline had a fleet size of three and used to serve eight domestic destinations.
9. Air Mantra
Founded in 2011, Air Mantra was launched by Religare Group, which wanted to capture the routes in north India. It started off with the acquisition of ATR 72 and Bombardier Q400 aircraft. But eight months later, in 2013, all flight operations were suspended by the company due to poor bookings. The company was subsequently liquidated.
10. Air Carnival
Promoted by the Coimbatore Marine College (CMC) Group, Air Carnival was an Indian regional airline floated in 2013 with focus on chartered flights. It started its passenger services in 2016. It closed its operations in 2017 after its staff went on strike due to non-payment of dues and salaries.
Also read: Central Bank of India, Bank of Baroda, IDBI Bank: Who are the major lenders to Go First?
11. Air Deccan
In August 2003, Captain Gopinath founded Air Deccan with a fleet of six ATR turboprops. The carrier’s first flight was between Hyderabad and Vijayawada. Air Deccan was the first major Indian carrier that truly connected tier-1 and -2 cities in India, and offered low-cost tickets.
But with the entry of other low-cost airlines and high fuel prices, Air Deccan’s market share started dropping. The carrier was first rebranded as Simplifly Deccan in 2008 and then acquired by Kingfisher Airlines.
In 2017, Capt. Gopinath reacquired the rights to the name Air Deccan and started as a regional operator in western India. It got 34 routes under the government’s UDAN scheme that promotes regional connectivity in the country. But after Covid lockdown, the airline ceased its operations indefinitely.
12. MDLR Airlines
The airline started its in 2007 and controlled by Murli Dhar Lakh Ram (MDLR) Group. It tried the full-service model promising its passengers 'pure vegetarian food', but missed lease payments for its aircraft. It closed its operations in 2009.
13. East West Airlines
East West Airlines started its operations in 1992 and one of the first private companies to obtain an Air Operator Permit (AOP) from the Centre. Headquartered in Trivandrum, it was the first national-level private airline in India to operate after almost 37 years. It closed its operations in 1996 due to lingering debts.
14. ModiLuft
Based in Delhi, ModiLuft was launched in April 1993 by Indian industrialist S K Modi who aimed to run an airlines by joining hands with foreign carriers. He tied up with German flag carrier Lufthansa. The German airline provided pilots and trained ModiLuft's Indian staff, including pilots, cabin crew, mechanics, and ground passenger handling staff. Lufthansa Technik provided maintenance, overhaul, and spares support.
Things ended in 1996, when ModiLuft alleged Lufthansa was not keeping to its funding commitment. Lufthansa said ModiLuft defaulted on lease payments, and terminated the partnership.
15. Kalinga Airlines
Founded by pilot and politician Biju Patnaik, Kalinga Airlines was one of the first private airlines in India. It was founded in 1947 and was based in Kolkata. In 1953, Kalinga was nationalised along with other carriers. In 1957, it eventually merged with Indian Airlines and restarted operations as a non-scheduled charter operator.
Also read: IndiGo, SpiceJet & Jet Airways shares jump up to 8% after Go First files for insolvency
The list of defunct airlines is not exclusive. There are many in list, which include Air Costa, Air India Cargo, Air Odisha, Air Services of India, Ambica Airlines, Archana Airways, Aryan Cargo Express, Chhattisgarh Air Link, Crescent Air Cargo, Damania Airways, Darbhanga Aviation, Deccan 360, Elbee Airlines, Fly Hornbill, FLYeasy, Gujarat Airways, Himalayan Aviation, Hinduja Cargo Services, Indian National Airways, Indus Air, Jagson Airlines, Jamair, JetLite, Kairali Airlines, Kerala Seaplane, Mistri Airways, NEPC Airlines, Pushpaka Aviation, Transportes Aereos da India Portuguesa, and others.
Also read: JKC 'remains fully committed to revival of Jet Airways' as CEO-designate Sanjiv Kapoor quits