Indian Airlines was a state-owned airline in India that later became a division of Air India Limited before ultimately ceasing operations. It was based in Delhi and focused primarily on domestic routes, along with several international services to neighbouring countries in Asia and limited flights to the Middle East and Southeast Asia. It was a division of Air India Limited after the merger of eight pre-Independence domestic airlines.

On 10 December 2005, the airline was rebranded as Indian for advertising purposes as a part of a program to revamp its image in preparation for an initial public offering (IPO). The airline operated closely with Air India, India's national overseas carrier. Alliance Air was a fully owned subsidiary of Indian.

In 2007, the Government of India announced that Indian Airlines would be merged into Air India Limited as its wholly owned subsidiary. As part of the merger process, a new company called the National Aviation Company of India Limited (now called Air India Limited) was established, into which both Air India (along with Air India Express) and Indian (along with Alliance Air) would be merged. Once the merger was completed on 26 February 2011, the airline – called Air India – would continue to be headquartered in Mumbai and would have a fleet of over 130 aircraft.

The airline was set up under the Air Corporations Act, 1953 with an initial capital of ₹32 million and started operations on 1 August 1953. It was established after legislation came into force to nationalise the entire airline industry in India. Two new national airlines were to be formed along the same lines as happened in the United Kingdom with British Overseas Airways Corporation (BOAC) and British European Airways (BEA). Air India took over international routes and Indian Airlines Corporation (IAC) took over the domestic and regional routes.

Eight pre-Independence domestic airlines, Deccan Airways, Airways India, Bharat Airways, Himalayan Aviation, Kalinga Airlines, Indian National Airways, Air Services of India and the domestic wing of Air India, were merged to form the new domestic national carrier Indian Airlines Corporation. International operations of Air India Ltd. was taken over by the newly formed Air India International. Indian Airlines Corporation inherited a fleet of 99 aircraft including 74 Douglas DC-3 Dakotas, 12 Vickers Vikings, 3 Douglas DC-4s and various smaller types from the seven airlines that made it up.

Vickers Viscounts were introduced in 1957 with Fokker F27 Friendships being delivered from 1961. The 1960s also saw Hawker Siddeley HS 748s, manufactured in India by Hindustan Aeronautics Limited, join the fleet. The jet age began for IAC with the introduction of the pure-jet Sud Aviation Caravelle airliner in 1964, followed by Boeing 737-200s in the early 1970s. April 1976 saw the first three Airbus A300 wide-body jets being introduced. The regional airline, Vayudoot, which had been established in 1981, was later reintegrated. By 1988, Airbus A320-200s were introduced. The economic liberalisation process initiated by the Government of India in the early 1990s ended Indian Airlines' dominance of India's domestic air transport industry.

The Indian Government liberalised the private sector in Early 90s and with the emergence of new competitors, Indian Airlines faced tough competition from Jet Airways, Air Sahara, East-West Airlines, Skyline NEPC and ModiLuft. Yet, until 2005, Indian Airlines was the second-largest airline in India after Jet Airways while Air Sahara controlled 17% of the Indian aviation industry. During that time few other domestic carriers like East-West Airlines, Skyline NEPC and ModiLuft discontinued their flight operations.

Also, during 1993, another government-established regional feeder airline called Vayudoot was merged with Indian Airlines, but still operated as a standalone division until 1997 after which its entire flight operations were transferred to Indian Airlines and its employees absorbed into Indian Airlines and Air India.^{[citation needed]}