India's chiefly domestic state-owned carrier, Indian Airlines Ltd., flies passengers and cargo to 59 domestic and 16 international destinations. Its fleet numbered 52 aircraft in 2000. Indian Airlines has traditionally based its network around the four main hubs of Delhi, Mumbai (formerly Bombay), Calcutta, and Chennai (formerly Madras). The airline carries about six million passengers a year and has a substantial freight operation.
Origins
The Air Corporations Act of 1953 amalgamated India's dozen or so airlines, most of them undercapitalized, into two nationalized air carriers: Air-India Ltd., given responsibility for international routes, and Indian Airlines Corporation (IAC), the domestic airline.
The eight airlines that were amalgamated into IAC included Air Services of India Ltd., Airways (India) Ltd., Bharat Airways Ltd., Deccan Airways Ltd. (already 70 percent government-owned), Himalayan Aviation Ltd., Indian National Airways Ltd., Kalinga Airlines, Ltd., plus the domestic operations of Air-India Ltd.
IAC began operations with a fleet of 74 of the war surplus Douglas DC-3s that had founded its short-lived predecessors. The airline also had three times as many employees as it needed, writes R.E.G. Davies, a situation that was slow to change due to the government's refusal to allow layoffs. Davies also writes that the standard of maintenance was low and the airline suffered many accidents in its early years. IAC soon moved to bolster its fleet by ordering a few new de Havilland 114 Herons, retired after only a couple of years of service, and Vickers Viscount 768s, which were assigned to trunk routes. The DC-3s continued to supply feeder traffic; they soon began to be phased out by Fokker F-27s and Avro 748s. IAC began flying short-haul jets--French-made Caravelles--in the mid-1960s. The Caravelles were so popular that IAC soon needed larger jets to on the routes between Bombay (Mumbai), Delhi, Calcutta, and Madras