The Rise and Fall of East West Airlines – India’s First Private Airline

Introduction to East West Airlines

In the early 1990s, as India opened its economy, the skies saw a new entrant— East West Airlines. A pioneer in the private aviation space, the Airline was the first domestic carrier to receive approval for scheduled operations after decades of monopoly by government-owned Air India and Indian Airlines.

But despite a promising start, the Airline’s journey was cut short, ending in mystery and tragedy. Here’s a detailed look at how the Airline started, soared, struggled, and eventually vanished.

The Beginnings: Liberalization and Opportunity

In 1991, India adopted economic reforms and dismantled state monopolies in several sectors, including aviation. Until then, Air India and Indian Airlines had dominated the Indian skies. The government introduced the Open Skies Policy, which led to a wave of private carriers entering the market. It granted a scheduled air service license to East West Airlines, making it the first Indian private Airline to receive such approval.

Founding and Vision

East West Airlines was founded in 1992 by Thakiyudeen Wahid, a Kerala-born entrepreneur who was running a successful human resources recruitment firm in the Middleeast at the time. With a vision to revolutionize air travel in India, Wahid ventured into aviation, capitalizing fully on the liberalized environment.

Fleet and Operations of East West Airlines

The Airline began its operations in early 1992 with a leased fleet of Boeing 737-200 aircraft from international companies. Then they established their base in Mumbai and connected major Indian cities, including Delhi, Chennai, Bangalore, and Kochi, through its flights.

Rapid Growth

By 1994, East West Airlines had grown into a well-recognized name in Indian aviation, operating nearly 42 daily flights. The Airline’s strategy focused on punctual service, decent in-flight amenities, and competitive pricing, making it a favourite among business and leisure travellers alike.

Challenges and Crisis

Despite its rapid rise, the Airline soon encountered significant operational and financial challenges.

Market Competition

The liberalized aviation market also gave rise to several other private carriers, including Jet Airways, Modiluft, Damania Airways, and NEPC Airlines. Fierce competition, fierce wars, and rising operational costs began to erode East West’s profitability.

Regulatory and Financial Woes

Aviation in the early ’90s suffered from poor infrastructure, high taxation, and inefficient regulation. Leasing aircraft and sourcing spares in a cash-strapped system proved difficult. The Airline also allegedly defaulted on payments to aircraft leasing companies, resulting in the grounding of several of its aircraft.

The Tragic Turning Point of East West Airlines

On 13 November 1995, tragedy struck when unidentified assailants shot and killed Thakiyudeen Wahid, the Managing Director of East West Airlines, in Mumbai. Many believed that gangland elements were behind the killing, and reports suggested that underworld groups had been sending him extortion threats.

Aftermath of Wahid’s Death

Wahid’s sudden and violent death left the Airline without strong leadership. Within weeks, investor confidence collapsed. Operational efficiency plummeted, many pilots and employees left, and soon, routes were cancelled one by one.

By August 1996, East West Airlines had ceased operations entirely.

The Legacy of East West Airlines

Though it operated for only four years, the Airline played a pivotal role in shaping India’s private aviation landscape.

• First Scheduled Private Airline: It was the first Indian private Airline to receive approval for scheduled operations post-liberalization.
• Pathbreaking Spirit: It opened the skies for competition, setting the stage for future giants like Jet Airways, IndiGo, and SpiceJet.
• Tragic End, Lasting Impact: Although its fall was abrupt and sad, the story serves as a case study in ambition, innovation, and the high risks associated with early deregulation in aviation.

Conclusion

The story of East West Airlines is more than just about planes and profits—it’s about dreams, disruption, and the challenges of pioneering in uncharted skies. Though it disappeared decades ago, its bold move into a government-dominated space laid the foundation for today’s thriving Indian aviation sector.