The Air India Group recently marked a significant chapter in its ongoing Vihaan.AI transformation program by successfully merging Air India Express Ltd. and AIX Connect Pvt. Ltd. (previously known as AirAsia India). This strategic integration unites two of India’s largest low-cost carriers under the single banner of Air India Express, operating with a unified airline code, IX. This merger underscores the group’s ambition to streamline operations and elevate its presence in the highly competitive aviation market.
Key Milestone in Air India Group’s Transformation Plan
Completing the Air India Express-AIX Connect merger represents a pivotal moment in the group’s broader plan to consolidate its aviation operations. As part of the five-year Vihaan.AI transformation initiative, Air India Group is merging its four airlines into two: Air India will integrate with Vistara, and Air India Express with AIX Connect.
This carefully executed merger highlights Air India’s focus on operational excellence and market expansion. The consolidation strengthens the group’s ability to compete domestically and internationally by creating a more robust and scalable low-cost carrier.
Challenges and Achievements During the Merger Process
The merger process between Air India Express and AIX Connect was completed within a relatively short span of less than a year. This fast-tracked process was a testament to meticulous planning and collaborative efforts among various stakeholders, including the Directorate General of Civil Aviation (DGCA), the Ministry of Civil Aviation (MOCA), and the Bureau of Civil Aviation Security (BCAS).
One of the most challenging aspects of the merger was the harmonization of operational manuals and the transfer of Air Operator Certificates (AOCs). This crucial step ensured that both carriers were aligned on operational procedures, safety standards, and compliance with regulatory requirements. The DGCA played a critical role in overseeing and facilitating this process, providing constant guidance and support to ensure the merger was completed without disruption to ongoing operations.
Vikram Dev Dutt, Director General, DGCA, said: “The successful integration and merger of AIX Connect with Air India Express is commendable and serves as a benchmark for airline mergers. India’s rapid evolution into the world’s third-largest aviation market calls for a robust regulatory regime. Accomplishing this milestone given the complexities involved, is testimony to the efforts put in by teams from both the DGCA and the operator.”
Air India Express Post-Merger Growth Strategy
With the successful completion of this merger, Air India Express is poised for an exciting phase of growth and transformation. The airline’s fleet has rapidly expanded to 88 aircraft, and it is expected to exceed 100 aircraft by the end of the current financial year. This impressive fleet expansion is in response to the growing demand for low-cost air travel, particularly in high-traffic regions such as India, the Gulf, and Southeast Asia.
The airline’s route network has also seen a substantial increase. The number of routes has more than doubled, jumping from 74 to 171, and passenger carriage has surged by over 400% since the Tata Group took control of Air India in early 2022. This aggressive expansion strategy aligns with Air India Group’s larger vision of becoming a world-class airline that caters to both premium and budget-conscious travellers.
Seamless Integration with Enhanced Brand Identity
The Air India Express brand has been rejuvenated as part of the merger, unifying the operations of AIX Connect under the same name. Since October 2023, flights operated by AIX Connect have been marketed under the Air India Express brand, complete with a new livery and visual identity.
Aloke Singh, Managing Director, of Air India Express, said: “About a year ago, we started the integration of AIX Connect and Air India Express, bringing the two organisations together behind a common brand. Alongside this, we worked on the complex integration exercise culminating today in the operational and legal merger of the two organisations. The close collaboration amongst DGCA, BCAS, MoCA, AIX group leadership teams and many other colleagues were instrumental in the success of this exercise.”
Synergies Between Air India and Vistara
As Air India Express consolidates its position in the low-cost market, the Air India Group is also moving forward with its plan to merge Air India with Vistara by November 2024. This merger is expected to create a formidable full-service carrier that can effectively compete on the global stage.
The synergies created by these mergers are expected to unlock new opportunities for operational efficiency, customer experience, and network growth. The integrated airlines will offer a broader range of services, including premium and budget-friendly options, ensuring that Air India Group can cater to the diverse needs of travellers both in India and abroad.
Campbell Wilson, Managing Director & Chief Executive Officer of Air India and Chairman, of Air India Express,said: “The integration of AIX Connect with Air India Express is an important milestone in Air India’s Vihaan.ai transformation journey. The merged entity will cater to the growing demand for air travel around India and in the region, especially amongst the country’s aspirational youth looking for fresh and more appealing value products. This merger will be followed by the merger of Vistara into Air India on 12 November. We look forward to working with the guidance of DGCA to conclude it seamlessly.”
Looking Ahead: Future Growth Prospects
As Air India Express moves forward post-merger, the airline is focusing on both expanding its fleet and strengthening its market presence. The group is keen on tapping into the vast potential of the low-cost carrier market in India, which is one of the fastest-growing aviation sectors globally.
The airline plans to introduce new aircraft at a rate of approximately four per month, reflecting its ambitious growth trajectory. Furthermore, the expanded route network and increased passenger capacity are poised to contribute significantly to the airline’s future revenue and profitability.
With a solid operational foundation in place and a clearly defined growth strategy, Air India Express is well-positioned to play a pivotal role in the continued success of the Air India Group.
Read more atTravelMail| Follow us onFacebook|Twitter| andInstagramfor on-the-go news
