Air India Group Merger Expands Low-Cost Empire

Air India Completes Integration of Low-Cost Carriers as part of Transformation Journey

The Air India Group has achieved a major milestone in its Vihaan.ai transformation journey with the successful integration of its two low-cost carriers, Air India Express Ltd and AIX Connect Pvt Ltd. This significant development came after the Directorate General of Civil Aviation (DGCA) provided the final approval, including the transfer of air operator certificates.

Merger Consolidates Low-Cost Carriers into Air India Express

The recent merger resulted in the consolidation of AIX Connect Pvt Ltd, formerly AirAsia India, into Air India Express. This joint venture between Tata Sons and AirAsia Bhd has now been harmoniously integrated into Air India’s low-cost carrier.

The integration process involved various crucial steps, such as harmonizing operational manuals, transferring aircraft, and obtaining operational, safety, and maintenance approvals. The successful completion of this merger sets an exemplary benchmark for airline integrations in the aviation sector, reflecting the commendable efforts by both the DGCA and the airline operator.

Achieving Air India’s Vihaan.ai Transformation

Campbell Wilson, the Managing Director and CEO of Air India, expressed his satisfaction with the integration of the low-cost carriers, considering it a significant step in the airline’s Vihaan.ai transformation journey. Looking forward, Air India plans to proceed with the merger of full-service carrier Vistara into its operations.

By November 12, Air India aims to complete the merger with Vistara, a move that will culminate in the creation of a comprehensive airline focused on long-haul international routes. At the same time, Air India Express will continue its efforts in providing cost-effective and efficient short-haul flight operations.

Rapid Fleet Growth and Expansion Plans

With the completion of this merger, Air India Express boasts a current fleet size of 88 aircraft. Notably, the carrier anticipates adding almost four new aircraft to its fleet on a monthly basis. Such growth projections indicate that Air India Express is on track to surpass the milestone of 100 aircraft by the end of the current financial year.

Air India Express is widely recognized for its extensive network, connecting various destinations across India, the Gulf region, and Southeast Asia. The addition of new aircraft and the subsequent expansion of operations will provide passengers with more options and increased connectivity in these regions.

Tata Sons’ Privatization Acquisition

It is worth highlighting that Tata Sons, in January 2022, acquired Air India from the Indian government for ?18,000 crore as part of the airline’s privatization plans. This acquisition has facilitated an exciting phase of growth and transformation within Air India, setting the stage for enhanced services and expanded flight coverage.

In conclusion, the successful integration of low-cost carriers into Air India Express represents a significant achievement for the airline. With further plans for the merger with Vistara in the pipeline, Air India is on its way to becoming a comprehensive airline catering to both short-haul and long-haul flights. The consistent expansion of its fleet and network will undoubtedly contribute to delivering better aviation services and strengthening India’s aviation sector as a whole.

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