India’s domestic air transport market is one of the fastest-growing markets globally, driven by increasing middle-class incomes, government policies like UDAN to foster regional connectivity, and demand for low-cost, efficient air travel.
According to India possesses a diverse full-service and low-cost as well as regional carrier fleet that serves over 90 domestic destinations as of 2025.
IndiGo is India’s leading domestic market-share airline (over 60%), known for punctuality, low cost, and high connecting density of covering key metros to tier-2 towns. It operates with a fleet dominated by Airbus A320 family aircraft and has strong dominance in hubs like Delhi, Mumbai, Bengaluru, and Hyderabad.
The national carrier, now part of Tata Group, is a three-class full-service operation (First, Executive, Economy). It serves an extensive domestic and international network and is part of Star Alliance. Air India is known for upscale facilities and high connectivity.
A partnership company of Tata Sons and Singapore Airlines, Vistara is India’s sole 5-star-rated airline (Skytrax 2022). It has three cabin classes and concentrates on high-end service, operating from Delhi, Mumbai, and Bengaluru primarily.
One of the leading low-cost carriers, SpiceJet connects several tier-2 cities at affordable fares. It operates Boeing 737 and Q400 turboprops and features services such as SpiceMax (extra legroom) and SpiceXpress cargo.
AirAsia India, which is now owned completely by Tata Sons and has been renamed AIX Connect, flies Airbus A320s with emphasis on on-time performance and low prices, primarily covering southern and eastern India.
Inducted in 2022, Akasa Air is a new low-cost airline with a contemporary Boeing 737 MAX fleet, with an emphasis on sustainability and low fares with free snacks on board.
An Air India subsidiary, Alliance Air has ATR 72 aircraft with a focus on regional connectivity, particularly under the UDAN scheme, connecting tier-3 cities and smaller towns.
Star Air and FlyBig are regional connectivity specialists, specifically in Andhra Pradesh, Karnataka, and Northeast India, through smaller aircraft such as the Embraer E175 and ATR 72.
Being temporarily suspended from May 2023 due to financial problems, Go First was famous for super-cheap fares and on-time arrivals.
Airline
Founded
Headquarters
Fleet Size (approx.)
Key Hubs
Service Type
Notable Features
IndiGo
2006
Gurgaon, Haryana
300+ (Airbus A320/A321)
Delhi, Mumbai, Bengaluru, Hyderabad, Kolkata, Chennai
Low-cost carrier
Largest market share, punctual, affordable fares
Air India
1932
Gurugram, Haryana
120+ (Boeing, Airbus)
Delhi, Mumbai, Bengaluru
Full-service
Flag carrier, Star Alliance member, premium amenities
Vistara
2015
Gurgaon, Haryana
60+ (Airbus A320neo, Boeing 787)
Delhi, Mumbai, Bengaluru
Full-service
5-star rated, three cabin classes
SpiceJet
2005
Gurgaon, Haryana
90+ (Boeing 737, Q400)
Delhi, Hyderabad
Low-cost carrier
Budget fares, regional connectivity, SpiceMax seats
AirAsia India (AIX Connect)
2013
Bengaluru, Karnataka
30+ (Airbus A320)
Bengaluru
Low-cost carrier
Ultra-low cost, punctual, dynamic pricing
Akasa Air
2022
Mumbai, Maharashtra
20+ (Boeing 737 MAX)
Mumbai, Bengaluru, Ahmedabad, Chennai
Low-cost carrier
Newest airline, sustainability focus, free snacks
Alliance Air
1996
New Delhi
20+ (ATR 72)
Delhi, Hyderabad, Bengaluru, Kolkata, Mumbai
Regional carrier
Connects tier-2/3 cities, UDAN scheme focus
Star Air
2019
Bengaluru, Karnataka
8 (Embraer E175)
Hubli, Belagavi, Tirupati
Regional carrier
Regional connectivity in South India
FlyBig
2020
Guwahati, Assam
3 (ATR 72)
Guwahati, Shillong, Kolkata
Regional carrier
Northeast India focus
Go First
2005
Mumbai, Maharashtra
Suspended operations
Delhi, Mumbai
Low-cost carrier
Known for low fares, currently suspended
India’s domestic airline industry in 2025 is dominated by intense rivalry among well-developed low-cost players such as IndiGo and SpiceJet, full-service carriers like Air India and Vistara, and regional carriers that increase the connectivity to smaller towns.
This competition has led to better services, lower prices, and increased air travel penetration in the country, enabling India to emerge as one of the world’s largest aviation markets.
India’s domestic airline industry in 2025 is dominated by intense rivalry among well-developed low-cost players such as IndiGo and SpiceJet, full-service carriers like Air India and Vistara, and regional carriers that increase the connectivity to smaller towns.
This competition has led to better services, lower prices, and increased air travel penetration in the country, enabling India to emerge as one of the world’s largest aviation markets.
