The Domestic Airlines in India: A Comprehensive Guide

Air India A320 and Boeing
Eluveitie, CC BY-SA 3.0, via Wikimedia Commons

Introduction

India’s domestic aviation market has evolved into one of the largest and fastest-growing in the world. 

Rapid urbanization, a growing middle class, and improved regional connectivity have fueled this growth, making air travel the preferred mode of transport for millions.  

This guide provides a comprehensive overview of India’s domestic airlines in 2025 — including leading carriers, market trends, recent mergers, fleet expansion, and emerging opportunities.

Major Domestic Airlines in India 

 IndiGo Airbus A320 VT-ITK at Mumbai Airport
Premkudva, CC BY-SA 4.0, via Wikimedia Commons

1. IndiGo

IndiGo is the undisputed market leader in Indian aviation, maintaining the largest domestic market share. 

The airline operates a modern fleet primarily composed of Airbus A320neo and A321neo aircraft. 

IndiGo’s success lies in its strong focus on efficiency, punctuality, and cost-effective operations. 

It offers extensive connectivity across India’s metro and regional cities, ensuring frequent flights and high on-time performance.

 Air India Boeing 787-8 at Mumbai Airport in
Anonymous8010, CC BY-SA 4.0, via Wikimedia Commons

2. Air India

Air India, India’s flagship carrier, underwent a transformation after being acquired by the Tata Group. 

The airline has restructured its operations, integrated with Vistara, and embarked on an ambitious modernization plan. 

Air India now focuses on both domestic trunk routes and international long-haul services, offering premium products, loyalty benefits, and alliance connectivity as a member of Star Alliance.

3. Air India Express

Air India Express operates as a low-cost subsidiary under the Tata aviation umbrella. Traditionally focused on short-haul international routes, particularly to the Gulf, the airline has recently increased its presence on domestic routes. With its rebranding and integration strategy, Air India Express now plays a critical role in linking secondary Indian cities with major domestic and international hubs.

SpiceJet  Boeing 737-8K9
Md Shaifuzzaman Ayon, CC BY-SA 4.0, via Wikimedia Commons

4. SpiceJet

SpiceJet continues to serve as one of India’s most recognized low-cost carriers. 

Despite facing operational challenges in previous years, it remains a key player with a strong presence in both metro and regional markets. 

The airline operates Boeing 737 aircraft and Bombardier Q400 turboprops, allowing it to reach smaller airports efficiently. 

SpiceJet’s strategy relies on competitive pricing and ancillary revenues such as paid seat selection and meal services.

Akasa Air Boeing 737 (VT-YAO)
Timothy A. Gonsalves, CC BY-SA 4.0, via Wikimedia Commons

5. Akasa Air

Akasa Air, one of the newest entrants in the Indian aviation market, has quickly expanded its footprint since launching in 2022. 

Operating Boeing 737 MAX aircraft, the airline focuses on efficiency, modern design, and customer experience. 

Its steady growth reflects the increasing demand for affordable air travel, particularly among younger, tech-savvy passengers.

Boeing 737 Alliance Air
aeroprints.com, CC BY-SA 3.0, via Wikimedia Commons

6. Alliance Air

Alliance Air serves as a regional carrier, connecting tier-2 and tier-3 cities under the government’s regional connectivity scheme. 

Operating smaller turboprop aircraft, the airline ensures essential connectivity between underserved areas and major urban centers.

7. Go First (Ceased Operations)

Go First, formerly known as GoAir, ceased operations in 2023 following financial and operational challenges. After unsuccessful restructuring attempts, the airline entered liquidation proceedings. Its exit reshaped the competitive landscape, opening opportunities for other airlines to acquire slots and expand.

Market Structure and Leadership

IndiGo dominates India’s domestic aviation market with over half of total passenger traffic. Air India’s consolidation with Vistara has created a powerful full-service competitor, enhancing its premium offerings and route connectivity. SpiceJet and Akasa Air remain prominent in the low-cost segment, catering to price-sensitive travelers. Meanwhile, regional carriers like Alliance Air and Air India Express are expanding their roles in connecting smaller cities.

The market has transitioned from fragmented competition to a more consolidated structure, which could improve stability, operational efficiency, and customer experience in the long run.

The Air India–Vistara Merger: A Transformational Milestone

The merger between Air India and Vistara marked one of the most significant consolidations in Indian aviation history. The integration unified two complementary brands — Air India’s extensive network and Vistara’s premium service culture — under one entity.

Key Outcomes:

• Integration of fleets, crew, and loyalty programs.

• Rationalization of overlapping domestic routes.

• Unified brand positioning to compete against IndiGo on quality and scale.

• Enhanced connectivity for both domestic and international passengers.

The merger also reflects a global trend of consolidation, helping airlines achieve economies of scale and more efficient capacity utilization.

Fleet Expansion and Modernization

Modernization is central to the growth strategies of Indian airlines. The focus has shifted toward fuel-efficient, environmentally friendly aircraft.

Fleet Composition Trends:

• IndiGo: Expanding with Airbus A320neo, A321neo, and ATR aircraft for regional routes.

• Air India: Incorporating wide-body Boeing 787s and Airbus A350s for trunk and long-haul sectors.

• Akasa Air: Operating a uniform Boeing 737 MAX fleet for streamlined operations.

• SpiceJet: Utilizing Boeing 737s and Q400s for metro and regional routes.

• Alliance Air: Operating ATR turboprops for short-haul regional connectivity.

This modernization not only improves fuel efficiency but also enhances passenger comfort and sustainability.

Chhatrapati Shivaji Maharaj International Airport, Mumbai
A.Savin, FAL, via Wikimedia Commons

Government Regulations and Infrastructure Developments

The Directorate General of Civil Aviation (DGCA) oversees safety, airworthiness, and passenger rights. Regular audits and performance data keep airlines accountable. The government’s “UDAN” (Ude Desh ka Aam Nagrik) scheme continues to encourage airlines to operate on regional routes, promoting inclusivity in air connectivity.

Airport Infrastructure

India has invested heavily in airport infrastructure. Expansion projects in Delhi, Mumbai, Bangalore, and Hyderabad have improved passenger handling capacity. Additionally, new greenfield airports in cities like Navi Mumbai and Jewar (Noida) are expected to further reduce congestion and improve travel convenience.

Indira Gandhi International Airport, New Delhi India
en:User:Grubb, Public domain, via Wikimedia Commons

Passenger Experience and Service Quality

Indian airlines are improving passenger experience through digital tools, loyalty programs, and customer-centric policies.

Passenger Expectations in 2025:

1. Digital Check-in: Airlines emphasize app-based boarding passes and self-bag drops.

2. Comfort and Cleanliness: Enhanced cabin hygiene and ergonomic seating.

3. In-flight Services: Optional paid meals and Wi-Fi access on select routes.

4. Loyalty Programs: Air India’s Flying Returns, IndiGo’s 6E Rewards, and Akasa Air’s upcoming loyalty offerings help retain frequent flyers.

Travelers are advised to book early, monitor terminal information, and confirm baggage allowances to avoid surprises at check-in.

Pricing Dynamics and Ancillary Revenue

Airfares in India follow dynamic pricing models influenced by demand, seasonality, and competition. While low-cost carriers compete on base fares, they rely heavily on ancillary revenues from services such as:

• Seat selection

• Priority boarding

• Extra baggage

• On-board meals

Full-service carriers bundle many of these features into their ticket prices, targeting business and premium leisure travelers.

Regional Connectivity and Tier-2/Tier-3 City Growth

India’s economic growth is no longer limited to metro cities. Airlines are expanding aggressively into regional markets such as Ranchi, Dehradun, Guwahati, Surat, and Coimbatore. The government’s UDAN initiative provides financial incentives and viability-gap funding to airlines operating on underserved routes.

This push not only supports economic development but also helps airlines tap into new demand segments, such as medical tourism, small business travel, and domestic leisure markets.

Sustainability and the Future of Indian Aviation

Sustainability is becoming a central theme in the aviation industry. Indian airlines are adopting several eco-friendly initiatives:

• Transition to next-generation, fuel-efficient aircraft.

• Use of sustainable aviation fuel (SAF) on select flights.

• Carbon offset programs for travelers.

• Reduction of single-use plastics onboard.

The long-term goal is to balance growth with environmental responsibility as India moves toward becoming a global aviation hub.

Challenges Facing Domestic Airlines

Despite positive momentum, the industry faces challenges:

• High operational costs: Jet fuel prices remain a major expense.

• Infrastructure congestion: Busy airports face slot constraints during peak hours.

• Foreign exchange fluctuations: Aircraft leasing and maintenance costs rise when the rupee weakens.

• Competition: Intense fare wars sometimes pressure profitability.

• Regulatory compliance: Continuous oversight by DGCA requires strict adherence to safety standards.

However, the sector’s resilience and adaptability have enabled sustained recovery post-pandemic and post-consolidation.

Emerging Trends to Watch in 2025 and Beyond

1. Further Consolidation: Additional partnerships and code-share agreements are likely.

2. Fleet Renewal: Continued adoption of modern aircraft models.

3. Digitization: AI-driven pricing, chatbots, and biometric boarding.

4. Infrastructure Expansion: New airports and regional hubs under construction.

5. Customer-Centric Offerings: Airlines focusing on personalization and loyalty retention.

6. Global Partnerships: More alliances to strengthen international feeder traffic.

The convergence of these factors positions India as one of the most promising aviation markets globally.

Frequently Asked Questions (FAQs)

Q1. Which is the largest domestic airline in India?

IndiGo holds the largest share of India’s domestic passenger traffic.

Q2. What happened to Vistara?

Vistara’s operations were integrated into Air India as part of a major consolidation in 2024.

Q3. Is Go First still operating?

No. Go First ceased operations in 2023 and entered liquidation proceedings.

Q4. Which airlines serve smaller cities in India?

Airlines such as IndiGo, Akasa Air, Alliance Air, and Air India Express operate flights connecting tier-2 and tier-3 cities.

Q5. Which airline offers the best on-time performance?

Historically, IndiGo has led in on-time performance among major domestic carriers.

Conclusion

The domestic aviation landscape in India has transformed dramatically. IndiGo continues to dominate the low-cost market, while the Tata-led Air India has become a robust full-service rival following its merger with Vistara. New entrants like Akasa Air and legacy players like SpiceJet add competitive vigor to the sector. As infrastructure improves and sustainability takes center stage, India’s domestic airline industry is poised for a new era of growth, efficiency, and global relevance.

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References

1. Directorate General of Civil Aviation (DGCA) — Monthly Domestic Traffic Reports (2024–2025).

2. Ministry of Civil Aviation — UDAN Regional Connectivity Scheme Updates.

3. IATA Aviation Market Analysis — India Domestic Passenger Market Trends.

4. Air India Official Press Releases (2024–2025).

5. IndiGo Annual Performance Report (2024).

6. Akasa Air Media Center — Fleet and Route Expansion Updates.

7. Economic and Business News Reports on the Air India–Vistara Merger.

8. Tribunal and Court Proceedings Reports — Go First Insolvency and Liquidation.

9. Airport Authority of India (AAI) — Infrastructure and Terminal Development Briefs.