Who's Who in India Aviation

Indian Airlines Profile

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Carrier:	Indian Airlines
Headquarters:	INDIA
Founded:	1953
Destinations:	76
Bases:	New Delhi
Owners:	Government of India
Listed:	Yes
Online Booking:	Yes
Website:	http://indian-airlines.nic.in
Fleet	A320s 48 plus 15 in Alliance Air Subsidiary A300 3 plus A319 X 6, DO228 X 2 A320s 43 on order

Overview - Indian Airlines

In 1953, the Government of India nationalised eight private airlines and brought them together under the name of Indian Airlines. The carrier was a monopoly provider of scheduled domestic air service until 1994.

Following deregulation in 1994, a number of new carriers entered the market, many of which failed. However, two strong competitors emerged during the 1990s, Jet Airways and Air Sahara. Competition from the new private carriers required the airline to adapt to the new order, a process which was difficult due to the fact that management did not have complete commercial freedom, and the government was unwilling to invest in the airline. Between 1999 and 2003, the carrier’s fleet did not increase by a single aircraft – during the same period the private carriers’ fleet almost doubled to 53. Inevitably, Indian Airlines’ market share declined, from 100% in 1994 to 40% by 2004 and just 20% by 2007.

After years of neglect, in 2005 the government finally approved an order for 43 new Airbus aircraft, 70% of which will be used for replacement of existing equipment. The carrier also rebranded in 2006 with a new livery and logo, which emphasises the name “Indian” rather than “Indian Airlines”.

In 2006, the Government announced plans to establish a roadmap to merge Indian Airlines with the other state-owned carrier, Air India, which operates international routes. This proposal received Cabinet approval in March 2007. The move is expected to generate network and operational efficiencies, fleet optimisation and make the combined entity a more attractive target for global alliances. The merger is expected to be formalised during 2007, although integration of the two carriers is likely to take a further 18 months.