The Indian aviation sector is one of the fastest growing aviation industries in the world. There is too much potential of growth in this sector and the growth of this sector will definitely affect the growth of Indian Economy positively. So, the present study is conducted to evaluate the solvency position of top five scheduled domestic airlines. The study is based on secondary data collected from the Profit and Loss A/c and Balance Sheet associated with schedules, annexure available in the published annual reports of airlines and Capitaline data base. The data have been collected for the past twelve years ranging from 2004-05 to 2015-16 and compiled into tables and analyzed with the help of Ratio Analysis, Mean, Standard Deviation, Co-efficient of Variation and Compound Annual Growth Rate. It has been found from the present study that the solvency position of the airlines is not satisfactory as the compound annual growth rate found negative in most of the cases. All the selected airlines have been found more dependent over borrowed capital in comparison of owned capital. The debt to total shareholders’ fund ratio has been found more consistent in all the cases as the co-efficient of variation is least for this ratio. It can be suggested here that the airlines should try to improve their solvency condition and they should try to reduce burden of debt by issuing new owned capital.

KEYWORDS: aviation industries, airlines, shareholders’ fund, economic crisis