In a significant development for Indian aviation, Air India Group, owned by the Tata Group of Companies, has completed the operational integration and legal merger of its two low-cost subsidiaries, Air India Express and AIX Connect, earlier known as AirAsia India, into a larger low-cost carrier.
In a press statement, Air India says that this new merger will be operating under the unified name ‘Air India Express.’
It says that this milestone is part of the group’s ongoing transformation, which also includes the upcoming merger of Vistara into Air India.
The airline says that this operational integration and legal merger, completed in less than a year, streamlined the two airlines under the airline code IX.
The statement adds that on Tuesday, Vikram Dev Dutt, Director General, DGCA, handed over the updated Air Operator’s Certificate (AOC) to Aloke Singh, Managing Director, Air India Express, in the presence of Campbell Wilson, Chief Executive Officer of Air India and Chairman, Air India Express, at the DGCA headquarter in New Delhi.
“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,” said Dutt on the occasion.
Air India says that a live tracker created by the Flight Standards Directorate of DGCA with a dedicated team for continuous monitoring of the progress of the harmonisation process has been instrumental in achieving the challenging task in a time-bound manner.
“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,” said Wilson.
The statement adds that the newly merged Air India Express, now with 88 aircraft, plans to expand its fleet to over 100 by the end of the financial year, growing its route network across India, the Gulf, and Southeast Asia.
It goes on to say that since Tata Group’s acquisition of Air India in 2022, Air India Express has seen a significant rise in passenger volume and operational routes, marking a new phase in its growth strategy.
“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, 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, and MoCA, AIX and group leadership teams and many other colleagues were instrumental in the success of this exercise,” says Singh.
Air India says that this merger aligns with its broader Vihaan.ai transformation plan, aiming to offer enhanced value to India’s youth and aspirational travellers while preparing for the upcoming Vistara-Air India integration scheduled for November 12.
With the combined operational strength, Air India Express says it is set to cater to increasing demand and drive the next phase of growth in the low-cost aviation market.