Air transport is the most modern, the quickest and the latest addition to the modes of transport. Because of speed with which aero planes can fly, travel by air is becoming increasingly popular. As far as the world trade is concerned it is still dominated by sea transport because air transport is very expensive and is also unsuitable for carrying heavy, bulky goods. However, transportation of high value light goods and perishable goods is increasingly being done by air transport.
In 1929, Neville Vincent, a former RAF pilot came to India from Britain, joined TATA Sons and made a survey of all possible air routes. He presented the scheme to Director of TATA Sons. In Oct 1932 TATA Sons Ltd, which later become Air India International, commenced weekly airmail services between Karachi and Madras via Allahabad and Mumbai.
Later two more airlines came—The Indian National Airways came into existence in 1933 and Air Services of India into 1937. After the 2nd World War, the Government of India announced a new policy for the Development of Air Transport Services. In the first two years, it came into existence; the Government gave license to 11 companies to operate air services in different regions.
At the time of independence there were 9 airlines operating with and beyond the frontiers of the country carrying both air cargo and passengers. It was reduced to 8 with Orient Airways shifting to Pakistan. These were:
• Airways India Ltd.
• Air Services India Ltd.
• Bharat Airways Ltd.
• Deccan Airways Ltd.
• Himalayan Aviation Ltd.
• Indian National Airways Ltd.
• Kalinga Airlines.
Taking into consideration to deteriorating financial position of the conglomeration of private airlines, the Govt. nationalized the Airlines Industry in 1953 through Air Corporation Act 1953.
Nationalization resulted in creation of two companies—Indian Airlines Corporation (operating domestic services and short