On May 2, Go First, a budget airline owned by the Wadia Group, filed for bankruptcy with the National Company Law Tribunal (NCLT), putting an end to the company's operations after more than 17 years. The airline, which began operations in 2005 under the name GoAir but has since changed its name, has cancelled all flights beginning May 3.
It said that business had suffered because a major supplier of jet engines in the United States had stopped delivering its engines. A Go First representative stated in a statement, "Go First is facing a financial crunch due to non-supply of engines by US-based jet engines manufacturer Pratt and Whitney (P&W) that has forced the grounding of more than 50 planes."
The budget airline has been in this position before; only last month, Go First was in the red.
The bankruptcy of Go First, previously the country's fifth-largest airline, demonstrates once again how difficult the aviation sector is, albeit it is too early to predict what the future holds for the once-proud carrier.
Since India allowed private planes to fly its skies, many have come and gone. Listed below are some of India's defunct airline companies:
ModiLuft
In 1993, businessman SK Modi and the German airline Lufthansa partnered to form the private airline ModiLuft. Despite a solid history of punctuality, ground maintenance, and passenger safety, Modiluft did not last long.
It only operated until 1996 and had a fleet size of six planes. Ajay Singh rebranded ModiLuft as SpiceJet in 2004 after purchasing the airline's air-operating certificate (AOC).
Sahara Airlines
Subrata Roy established Sahara Airlines in 1993, with headquarters in New Delhi. It changed its name to "Air Sahara" in 2001. During its heyday, the airline served over 20 different locations and held a 12% market share.
Air Sahara pioneered nonstop flights from India to Sri Lanka's capital Colombo in 2003. After being acquired by Naresh Goyal's Jet Airways in 2007, Air Sahara became known as JetLite.
Vayudoot
Founded in 1981 as a partnership between Indian Airlines and Air India, Vayudoot is India's largest airline. The New Delhi-based airline's primary mission was to improve transportation options in the country's Northeast; however, it also served other domestic destinations.
However, the airline lost money due to rising operational expenses and poor passenger occupancy. In 1997, the government shut down Vayudoot because it could no longer be run economically.
Archana Airways
The New Delhi-based Archana Airways operated as a private airline. Despite launching in 1991, Archana Airways only served a small number of northern Indian cities until 1993.
Archana Airways, a tiny airline with a fleet of 9 planes, went out of business in 2000 due to mounting losses.
East-West Airlines
After announcing the Open Skies policy in 1991, East-West Airlines launched as the first regularly scheduled private airline in India. It served several Indian cities like Mumbai, New Delhi, Chennai, and Trivandrum with its fleet of eleven planes.
The murder of Chairman Thakiyudeen Wahid in 1995, just outside his office, was a devastating blow to the corporation. The company went out of business in 1996 due to mounting financial difficulties.
Damania Airways
Parvez and Vispi Damania, two brothers, established Damania Airways in 1992. It started operations in 1993, and the Mumbai-based company's fleet of five aircraft provided service to destinations including Delhi, Kolkata, Chennai, Bengaluru, and Indore.
The business closed its doors in 1997, only four years after it had first opened.
Paramount Airways
In 2005, Paramount Airways took off from its base in Chennai. At the age of 27, pilot M Thiagarajan reportedly became the youngest airline CEO in the world when he floated Paramount Airways.
In 2010, the firm was unable to continue operations due to issues with its supplier, the Brazilian aircraft manufacturer Embraer, and hence ceased to operate the same year.
Kingfisher Airlines
In 2005, billionaire Vijay Mallya established Kingfisher Airlines. Kingfisher has been on a growth spurt ever since it was founded, acquiring Air Deccan and its 34 planes in 2007.
Kingfisher was the number two domestic airline in India in 2011. Kingfisher left the market in 2012 after suffering severe financial losses and several failed rescue attempts.
Jet Airways
Jet Airways, which Naresh Goyal started in 1992, was once India's biggest airline. Many people think that Jet Airways' demise might be attributed to the rise of low-cost airlines, given that it was a full-service airline unlike any other at the time.
Jet Airways, beset by financial difficulties, declared bankruptcy in April 2019 and discontinued operations. Nonetheless, Jalan-Kalrock Consortium (JKC) took over the reins of Jet Airways and tried a comeback.
Jet Airways 2.0 has missed multiple launch dates due to the problems that have plagued this historic endeavour. The sudden departure of key personnel, including CEO-designate Sanjiv Kapoor, has cast doubt on the company's ability to get back in the air.
Air Deccan
As the first Indian "budget airline," Air Deccan is responsible for making air travel a reality for many people in India; it was started by Captain Gopinath.
In 2003, when it first opened for business in Bengaluru, the company had a fleet of 40 aeroplanes. After Vijay Mallya acquired a controlling interest in the airline in 2007, it was rebranded as Simplifly Deccan and then Kingfisher Red.
Air Pegasus
Founded in 2014, Air Pegasus ran from 2015 till its closure in 2017. Only three flights from Bengaluru reached eight locations, all of which were in South India. The whole airline's fleet was deregistered by DGCA in October 2016 due to missed lease payments. It was too much for the firm, and it shut down in 2017.
TruJet
TruJet, a regional airline, was founded in 2013 by Telugu star Ram Charan and Vankayalapati Umesh. It launched its operations in July 2015.
Andhra Pradesh, Telangana, Goa, Gujarat, Madhya Pradesh, Maharashtra, Rajasthan, and Tamil Nadu were among the nine states served by its fleet of seven ATR-72 aircraft. In February 2022, it terminated operations.
Conclusion
Financial difficulties, poor management, high fuel taxes, fierce competition, and restrictive government laws all played roles in the demise of several Indian airlines over the past couple of decades. Despite the market's large growth potential, new businesses joining it should expect a challenging road ahead. It remains to be seen if new entrants like Akasa Air will survive the rough Indian skies after Go First became the latest victim of this merciless market.
Multiple airlines have gone under in India due to financial difficulties, debt, and mismanagement, despite the country's promising potential as the world's third-largest and one of the fastest-growing aviation markets. Rapid expansion has been followed by either closure or acquisition for a number of Indian airlines, including Vayudoot, ModiLuft, Damania Airways, East-West Airlines, NEPC Airlines, Air Sahara, Jet Airways, Kingfisher Airlines, Air Deccan, and Paramount Airways.
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