FlyBig Faces Aircraft Seizure as Lessor Invokes International Treaty
In a significant blow to India's regional aviation sector, Japanese aircraft lessor AER, LLC has taken formal steps to repossess all three aircraft from struggling airline FlyBig. The lessor submitted an Irrevocable Deregistration and Export Request Authorization (IDERA) to India's Directorate General of Civil Aviation (DGCA) on November 6, seeking to deregister the entire fleet of three 19-seater DHC6 Twin Otter aircraft.
The affected aircraft, registered as VT-HIT, VT-FBC, and VT-BHK, represent FlyBig's complete operational fleet. According to flight tracking data from Flightradar24, all three aircraft have been grounded in Bhopal since late October, with VT-BHK and VT-HIT last operating on October 24, while VT-FBC made its final flight on October 26.
The Legal Mechanism Behind the Repossession
The IDERA request represents a powerful legal tool available to aircraft lessors under the Cape Town Convention, which India formally incorporated into domestic law through the Protection of Interests in Aircraft Objects Bill, 2025. This legislation received presidential assent in April 2025, creating a streamlined process for creditors to recover aircraft from defaulting airlines.
This development marks one of the first major tests of India's implementation of the Cape Town Convention, which aims to boost aircraft leasing, reduce costs, and attract investment in the Indian aviation sector. Prior to this legislation, India was merely a signatory to the convention without aligned local laws, creating significant hurdles for lessors attempting to reclaim aircraft, as witnessed during the Go FIRST insolvency case.
FlyBig's Operational Collapse
FlyBig's current predicament follows a steady decline in operations and passenger numbers. The airline's operational scale has dramatically shrunk from 255 approved weekly flights during Summer 2024 to a mere 58 weekly departures in the Northern Winter 2025 schedule that commenced on October 26. Even at its peak, the airline never operated its full quota of approved flights.
The airline's passenger statistics reveal a deeply troubled operation. In September alone, FlyBig operated 163 departures but carried only 610 passengers, resulting in a meager load factor of 20%. The carrier's highest load factor this year was recorded at 30.3% in April, which remains economically unsustainable even for 19-seater aircraft, particularly when considering operational costs and viability gap funding requirements.
As of today, FlyBig's website has effectively ceased functioning for flight bookings, with the airport selection feature displaying no available destinations. The airline held approvals for routes connecting Ambikapur, Bhopal, Bilaspur, Datia, Khajuraho, Raipur, and Rewa.
Turbulent History and Regional Aviation Challenges
FlyBig's journey has been marked by constant strategic shifts and operational challenges. The airline commenced operations in Indore with ATR 72 aircraft before shifting focus to the North East region. After encountering difficulties with ATR operations, the carrier transitioned to DHC6 Twin Otters, subsequently moving its base to Uttarakhand and Uttar Pradesh, then to Madhya Pradesh, launching new routes and airports at each location.
Despite these efforts, FlyBig failed to establish a strong market presence or sustainable operations. The airline's struggle reflects broader challenges in India's regional aviation sector, which has witnessed multiple failures including Paramount Airways, Air Costa, TruJet, Air Pegasus, and Air Carnival.
This development occurs during a period when Star Air emerged as India's largest and longest-serving private regional carrier, highlighting the contrasting fortunes within the sector.
Impact on Passengers and Regional Connectivity
While the number of directly affected passengers remains relatively small compared to major airline failures—with FlyBig averaging less than 5 passengers per flight throughout the year—the collateral damage to regional connectivity could be significant.
The potential cessation of FlyBig's operations threatens to remove airports in Rewa, Ambikapur, and Datia from the active airports map, further reducing India's operational airport count. The country began the winter season with 126 active airports, down from 129 during the previous winter season.
This situation emerges as the Indian government reevaluates the UDAN scheme for extension beyond its initial ten-year term. The FlyBig case underscores the urgent need for well-capitalized regional carriers capable of sustaining operations and developing niche ecosystems that benefit all stakeholders in the aviation value chain.
The ongoing crisis highlights the persistent structural challenges facing India's regional aviation ambitions and raises important questions about the sustainability of air connectivity to smaller cities and towns despite government support mechanisms.
