The year 2025 was a tumultuous yet transformative period for the Indian aviation sector. While the industry reached new heights with the inauguration of a long-awaited mega-airport, it was also humbled by one of the deadliest accidents in a decade and a massive operational meltdown.
IATA Returns To India: After 42 years, India hosted the annual general meeting (AGM) of the International Air Transport Association (IATA) and the World Air Transport Summit from June 1 to 3. The 81st AGM, hosted by IndiGo, was held at New Delhi’s Bharat Mandapam in New Delhi. Prime minister Narendra Modi addressed over 1,600 global aviation leaders, highlighting India's transformation into the world's third-largest domestic aviation market.
AI171 Crash: The darkest day for Indian aviation in 2025 occurred on June 12, when Air India flight AI171, a Boeing 787-8 Dreamliner, crashed shortly after takeoff from Ahmedabad. The London-bound flight lost thrust in both engines and crashed into a medical college hostel block just 32 seconds after liftoff, claiming 260 lives including 19 people on the ground. Miraculously, there was one survivor from the aircraft.
IndiGo’s Operational Crisis: In December 2025, India’s largest carrier, IndiGo, faced its worst operational crisis in history, triggered by the implementation of new flight duty time limitation (FDTL) rules. Between December 1 and 9, the airline was forced to cancel thousands of flights due to acute crew shortages and poor rostering. This resulted in the aviation regulator cutting down IndiGo’s winter schedule by 10%.
Navi Mumbai Airport Takes Flight: The Navi Mumbai International Airport (NMIA) finally transitioned from a project to a functional hub on Christmas, more than two months after the inauguration by prime minister Narendra Modi. Built at a cost of approximately Rs19,650 crore, NMIA is designed to handle 20 million passengers in its first phase, easing the immense pressure on Mumbai’s CSMIA.
Policy Reforms: The government passed the Bharatiya Vayuyan Adhiniyam 2024, which came into force on January 1, 2025. It replaced the colonial-era Aircraft Act of 1934, modernising regulations for aircraft leasing and safety. To counter the market dominance of IndiGo and Air India, the Civil Aviation Ministry issued No-Objection Certificates (NOCs) to three new airlines including Al Hind Air, FlyExpress, and Shankh Air, all slated for 2026 launches.
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