The airline industry is a dynamic and competitive market that constantly undergoes changes due to various internal and external factors. While some airlines flourish and become dominant players, others face challenges that lead to the unfortunate cessation of their services. According to the Indian Government, seven airlines have closed their doors in the past five years, including Heritage Aviation and Air Odisha Aviation.
Many Airlines Were Stopped Because Of This Issue
The government announced on Thursday that seven airlines, including Heritage Aviation and Air Odisha Aviation, had been shut down over the previous five years. According to an article by NDTV, information given by Minister of State for Civil Aviation VK Singh in a written reply to the Lok Sabha, there are currently 11 scheduled operators and 5 scheduled commuter operators in the nation.
Due to problems with the PW1100G-JM engines’ supply chain, several of these aircraft are grounded. According to the DGCA, the issue is a global one that affects all P&W customers and is caused by a lack of hardware to get the engines repaired and reconditioned. PW1100G-JM engines are made by Pratt & Whitney (P&W).
According to the data, seven airlines will no longer operate by July 21, 2023. In 2022, two airlines, Turbo Megha Airways Pvt Ltd and Heritage Aviation Pvt Ltd were shut down. Zexus Air Services Pvt Ltd, Deccan Charters Pvt Ltd, and Air Odisha Aviation Pvt Ltd were three carriers that ceased operations in 2020.
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The Continuous Rise And Fall Of Airlines
The airline industry is characterized by fierce competition. Operating an airline involves high fixed costs, including aircraft maintenance, leasing or financing expenses, and staff salaries. According to the data, Jet Airways (India) Ltd and Jet Lite (India) Ltd were shut down in 2019.
Due to a financial crisis, Jet Airways, which received an Air Operator Certificate (AOC) on February 13, 2022, ceased operations on April 17, 2019. Jet Airways (India) Ltd. underwent insolvency proceedings at NCLT, Mumbai, following the shutdown. The AOC was re-issued on 20.05.2022, but the airline did not start its operations and the AOC expired on 19.05.2023.
Economic instability, overcapacity, increased operating costs, safety concerns, changing consumer preferences, and market saturation are some of the factors that lead to many airlines stopping.
Cover image credits: Website/Jet Airways