Air India Express to Expand Fleet by 85 Aircraft in Three Years

Air India Express, the budget airline subsidiary of Air India, is set to undergo a significant expansion, planning to add approximately 85 aircraft to its fleet over the next three years. The announcement was made by CEO Aloke Singh during a press engagement in Kolkata. This strategic expansion is composed of 65 new aircraft and 20 used ones that will be transferred from parent company Air India.

Currently, Air India Express operates a diverse fleet of 91 aircraft, which includes twenty-five A320-200s, five A320-200N, thirty-five B737-8, and twenty-six B737-800s, as noted by ch-aviation fleets data. With the planned additions, the airline aims to elevate its total fleet size to about 175 aircraft by 2027. The expansion will predominantly feature new B737 MAX aircraft, with the carrier having orders in place for fifty B737-10s and 105 B737-8s.

The Tata Sons-owned airline recently completed a merger with AIX Connect (formerly AirAsia India), a move that will further bolster its capacity and market reach. The addition of new and transferred aircraft is expected to enhance Air India Express’s services both domestically and internationally. According to CEO Singh, about half of the expanded capacity will be deployed on domestic routes, focusing especially on connecting Tier 2 and Tier 3 cities with major hubs. Singh highlighted that these routes constitute two-thirds of the market and represent the fastest-growing segment.

In terms of financial performance, Air India Express reported a loss of INR 1.17 billion rupees (USD 13.8 million) for the fiscal year ending March 31, 2024. Despite the loss, the airline saw a 33% increase in year-on-year revenue, reaching INR 76 billion (USD 895 million). This revenue boost was attributed to higher passenger volumes and enhanced operational capacity. However, expenses also surged by 38.3% to INR 77.63 billion (USD 914 million) within the same period, reflecting the challenges of scaling operations in a competitive environment.

CEO Singh expressed optimism about the future, noting that the integration of AIX Connect is set to “expedite our path to profitability by achieving significant scale, optimizing costs, and better utilizing our assets.” The overarching goal for Air India Express is to establish a robust and scalable network that supports sustainable long-term growth, positioning the airline as a competitive player in the regional and international aviation markets.

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Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com