Gurugram (Haryana): Air India Group has reached a key milestone in its ongoing transformation with the completion of the merger between Air India Express Ltd and AIX Connect Pvt Ltd (formerly AirAsia India). This integration forms a consolidated low-cost carrier operating under the 'Air India Express' brand, signalling the group's commitment to creating a streamlined and competitive aviation entity.
The merger, which includes the unification of operational manuals, aircraft transfers, and regulatory approvals, aligns with the group's broader Vihaan.
AI transformation program is a five-year plan aimed at revamping Air India's operations. This program also involves merging four airlines under the Air India Group into two distinct entities, including the ongoing process of merging Vistara into Air India.
Operational and Strategic Impact
The merger enhances Air India Express' operational capacity and efficiency, enabling the airline to expand its fleet and network significantly. Currently, Air India Express operates 88 aircraft, with plans to surpass 100 by the end of the financial year. The carrier's routes have increased from 74 to 171, with a passenger growth rate of over 400% since Tata Group acquired Air India in 2022.
This expansion reinforces Air India Express as a vital player in the low-cost carrier segment, especially in India, the Gulf, and Southeast Asia.
Aloke Singh, Managing Director of Air India Express, emphasised the collaborative efforts between regulatory bodies like the Directorate General of Civil Aviation (DGCA), Bureau of Civil Aviation Security (BCAS), and the Ministry of Civil Aviation (MoCA), which were crucial in achieving this successful merger. "The close collaboration was instrumental in the success of this exercise," Singh noted, highlighting the significance of the integration for the airline's future growth.
Growth in Low-Cost Air Travel
This merger positions Air India Express to capture a growing share of the market, particularly among India’s youth, who are increasingly seeking affordable yet quality air travel.
With a focus on efficiency and innovation, the airline is expected to drive competition in the regional aviation space. Campbell Wilson, CEO of Air India and Chairman of Air India Express, called the merger a milestone in the transformation journey, adding that the consolidated low-cost carrier will continue to cater to the increasing demand for air travel in India and surrounding regions. Wilson also confirmed that the next phase of Air India Group's integration will involve the merger of Vistara with Air India, set for November 12.
Regulatory Success and Future Prospects
The DGCA played a pivotal role in ensuring the merger's smooth execution, with Director General Vikram Dev Dutt describing it as a "benchmark for airline mergers." The regulatory body's active monitoring and support helped overcome the complexities of integrating two airlines, enabling the operational merger in under a year.
Moving forward, Air India Express is set to further capitalise on the growing demand for affordable air travel, supported by its expanded fleet and operational capabilities. With the successful merger of AIX Connect, the airline is now well-positioned to achieve its ambitious growth targets, making it a key player in India's fast-evolving aviation sector.
