Daijiworld Media Network - New Delhi

New Delhi, Mar 23: The Ministry of Civil Aviation on Monday informed the Rajya Sabha that 11 airlines have ceased operations in India since 2016, primarily due to financial difficulties, aircraft shortages, and internal challenges.

The information was shared in response to a query by Saket Gokhale. In its written reply, the ministry ??ted that the aviation sector operates in a deregulated environment, where airlines make decisions based on commercial viability without direct government intervention.

The government, it said, focuses on policy-level support rather than operational control. Key initiatives include expanding airport infrastructure, rationalising traffic rights, facilitating fleet expansion, and enhancing regional connectivity through the UDAN Scheme.

Efforts to improve ease of doing business—such as simplified procedures, deregulation, and increased adoption of e-governance—have also been highlighted as part of the broader strategy to strengthen the aviation ecosystem.

The ministry pointed to ongoing structural consolidation within the sector. AirAsia India, now rebranded as AIX Connect, has merged with Air India Express, while Vistara has been integrated into Air India.

On outstanding dues, the ministry noted that grounded airlines have varying liabilities toward the Airports Authority of India. Kingfisher Airlines alone owes Rs 380.51 crore, including both principal and interest, with claims filed before the official liquidator in Bengaluru.

Meanwhile, TruJet has minimal dues of ?0.03 crore, while Jet Airways and Go First currently have no outstanding payments to the authority.

The government reiterated that while it aims to create a supportive policy framework, the success or failure of airlines ultimately depends on market dynamics and business decisions.