The Airport Authority of India (AAI) manages 127 airports including 15 international (12 AAI and 3 civil enclaves), 87 domestic airports (7 customs and 80 domestic airports) and 25 civil enclaves at defence airfields. It controls and manages the entire Indian airspace – 2.8 million nautical miles square on land and 1.75 million nautical miles oceanic area and restricted land area 0.37 million nautical mile square.

In 1994 the Air Corporation Act of 1953 was repealed with a view to removing monopoly of air corporations on scheduled services, enabling private airlines to operate schedules service, converting Indian Airlines and Air India to limited company and enabling private participation in the national carriers. However, beginning 1990 private airline companies have been allowed to operate air taxi services, resulting in the establishment of Jet Airways and Air Sahara. These changes in the Indian aviation policies resulted in the increase of the share of private airline operators in domestic passenger carriage to 68.5% in 2005 from 0.4 of 1991.