The government, struggling to find a solution to Vayudoot's continuing financial problems, considered both closure and privatisation as options, since the carrier's route and fleet structure made the operation unprofitable.

[4] In the late 1970s, the Indian government and its two airlines became aware of the increasing number of potential air travelers in many small towns around the nation.

[5] Vayudoot began operations on 26 January 1981, India's Republic Day, in the remote north-east of the country, linking towns in states such as Assam, Manipur and Tripura.

The flight, on the other hand was as short as 12 minutes, though weather could cause disruptions because this was flying where visual contact had to be maintained with the ground/terrain in the absence of reliable aids for navigation.

The weather caused poor visibility on account of heavy rains and low clouds and/or fog and could at times result in waterlogged runways.

To keep costs low, Vayudoot did not serve in-flight meals and contracted out its ground handling services to local agents at all smaller destinations.

[6] Subsequently, the services of Vayudoot were extended to other regions, charting 100 stations in the country earning the sobriquet "worlds fastest growing airline".

Vayudoot's financial performance continued to deteriorate which finally led to the dissolution of the company and merger of its assets into Indian Airlines in 1993.

Flying exclusively at night and negotiating violent storms called Kal baisakhi, followed by the Monsoon and in the absence of Radio navigation aids it became advisable to discontinue the operation.