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Because Indian people don't have much money to spend in airlines

Talking about airlines, it's one of the most difficult sectors to crack in India, as people here need affordable options that also justify their spending. Firstly, it requires a significant amount of money to buy or lease fuel-efficient airplanes. Secondly, the routes between destinations matter greatly. Apart from this, there are many other factors that influence the success of an airline business. It's not that every airline has failed; look at Indigo – it is one company that has truly understood the Indian commercial aviation sector.

Not all airlines are doing bad. There are some airlines like Ryanair doing pretty well while offering cheap flights.