Air India Express Poised for Rapid Growth Through Merger with AirAsia India and Fleet Expansion

Air India Express (IX) is set to undergo a significant expansion following its anticipated merger with fellow budget carrier AirAsia India by late March 2024. As reported by BusinessLine newspaper in Delhi, the airline is also gearing up to bolster its fleet with around fifty Boeing 737 MAX aircraft by December 2024.

The merger and fleet enhancement will provide Air India Express, a subsidiary of Air India, with a strategic advantage to amplify its West Asian network and introduce new routes both domestically and internationally, including key destinations such as Thailand, Malaysia, Bangladesh, and the Maldives.

Although specific details regarding the fleet additions have not been disclosed, ch-aviation has initiated contact with Air India Express for further insights.

Initially focused on medium-haul travel to the Middle East and Southeast Asia, Air India Express faced constraints due to fleet limitations, despite maintaining a strong financial position, as highlighted by BusinessLine. Hindered by disinvestment and the disruptions stemming from the COVID-19 pandemic, a 2018 business plan projecting a fleet of 50 aircraft by 2025 faced setbacks.

Nonetheless, the anticipated delivery of Boeing 737 MAX aircraft is scheduled to commence in September 2023, coinciding with the ongoing merger process with AirAsia India. The finalization of the merger is anticipated by late March 2024, culminating in a cohesive fleet and network operating under the name AIX Connect, the merged entity’s designation. According to BusinessLine, the airline’s aspirations include adding 23 more aircraft by March 2024, with a primary focus on expanding international routes. Additionally, plans encompass the introduction of new domestic flights from Bangalore International, Hyderabad, and cities in Kerala.

Air India Express currently operates a fleet comprising twenty-six Boeing 737-800s. On the other hand, AirAsia India operates a fleet of thirty A320s, consisting of twenty-five A320-200s and five A320-200Ns, along with eight A321-200NX aircraft on the horizon.

Both airlines are anticipated to transition to the new brand, functioning as a unified corporate entity under a single air operator’s certificate (AOC). With a common website and call center already in place, the integration process will now extend to staff consolidation, involving approximately 150 newly recruited pilots within the past 18 months.

The comprehensive integration strategy encompasses elements such as route optimization, network planning, employee assimilation, recruitment, and training. A phased introduction of a new logo and livery is also on the agenda to ensure a seamless operational transition.

This merger aligns with a broader consolidation initiative within Tata Sons airlines, encompassing the merger of Air India with Vistara, based at Delhi International.

Sources: AirGuide Business airguide.info, msn.com, ch-aviation, Air India