Air transport was nationalised in 1953. The Government of India took the responsibility of operating airways in the country. An airline service involves a lot of capital investment and planning.

The nationalization of air transport in India took place with the enactment of the Air Corporations Act of 1953. This legislation led to the establishment of two government-owned entities:

Air India International: This corporation was created to manage international air services.

Indian Airlines Corporation (IAC): This corporation was established to oversee domestic air services.

Before nationalization, the aviation sector in India consisted of several private airlines, each operating on specific routes. The decision to nationalize the air transport sector was driven by various factors, including the need for a more coordinated and organized approach to air travel, the expansion of air services to remote and underserved areas, and considerations related to national security.