Indian aviation industry: Air India

Abstract

The first domestic air route in the history of Indian civil aviation was by the Indian Sate Air Services between Karachi and Delhi in December 1912. In 1932, Tata Airlines, a division of Tata Sons Ltd began its journey. The then “Tata Airlines” was rechristened “Air India” in the year 1946. Air Indian International Ltd. was later formed in 1948 as a joint-sector company by the Govt. of India and Air India. In 1953, the government nationalized all the airlines via the “Air Corporations Act”, 1953, giving rise to Indian Airlines and Air India. Indian Airlines for formed with the merger of the-then playing 8 domestic-airlines and was to operate in the domestic routes and Air India International was to operate in the overseas market. Furthermore, the Act indirectly created monopolistic situation for Indian Airlines, by allowing it to operate on domestic scheduled services and ruling out all airlines. And on the similar lines, Air India became the sole Indian carrier plying on international routes. From 1986 onwards, the entry of private players into the aviation sector was more pronounced. Air Sahara and Jet Airways were few of the 6 players which were granted permission to operate as “Air Taxi Operators”. This period also saw the revocation of the “Air Corporation Act”, which paved way for attaining carrier status to the private operators as well.