Merger involved the harmonization of operational manuals across two low-cost carriers, and the transfer of aircraft, besides operational, safety and maintenance approvals; Air India Group is in the process of merging four airlines into two as part of its 5-year Vihaan.AI transformation program
Air India Group has completed the operational integration and legal merger of Air India Express Ltd and AIX Connect Pvt Ltd (erstwhile AirAsia India) into a larger Low-Cost Carrier.
The formation of the merged entity, which will operate under the ‘Air India Express’ name and a unified airline code IX, marks a significant milestone in the transformation journey of Air India Group, which is merging four airlines into two. The group is merging Vistara into Air India to set up a world-class global airline.
The merger process for Air India Express was completed in less than a year since the airline’s refreshed brand was unveiled. It involved harmonising operational manuals, as an enabler for the merger, and the transfer of Air operator certificates (AOCs). Given the complexity of such a merger, it required close working with the Directorate General of Civil Aviation (DGCA), who supported and monitored the process. The merger also received support from the Ministry of Civil Aviation (MOCA), the Bureau of Civil Aviation Security (BCAS) and other key stakeholders.
Mr Vikram Dev Dutt, Director General, DGCA, handed over the updated AOC to Mr Aloke Singh, Managing Director, Air India Express, in the presence of Mr Campbell Wilson, Chief Executive Officer of Air India and Chairman, Air India Express, at the DGCA headquarter in New Delhi on October 1, 2024.
Mr 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.”
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.
Mr 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.”
Mr. 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.”
With the merger completed, Air India Express will focus on a future growth and transformation agenda. The airline’s fleet size has already grown to 88 aircraft, with nearly four new aircraft continuing to join each month. The fleet is expected to cross 100 aircraft by the end of the current financial year, with a network footprint spanning across India, Gulf and Southeast Asia.
The number of routes AIX operates has risen from 74 to 171, and passenger carriage has increased by over 400% since the take-over of Air India by Tata group in early 2022.
In October 2023, the airline unveiled the unified brand ‘Air India Express’. Since then, flights operated by AIX Connect have also been marketed under the ‘Air India Express’ brand, with necessary regulatory approval.
Founded by the legendary JRD Tata, Air India is a pioneer of Indian aviation. Since its first flight in 1932, Air India has built an extensive global network that spans 29 countries across five continents, connecting India with major destinations in the USA, Canada, UK, Europe, Africa, Asia Pacific, Australia, and the Middle East.
After its homecoming in 2022, from the Government of India to the Tata group, Air India embarked on Vihaan.AI, a five-year transformation journey, with a vision to be a global airline with an Indian heart. The first two phases of this transformation, ‘Taxi’ and ‘Take-off’, were focused on fixing the basics and building foundations for growth. The airline has now entered the ‘Climb’ phase, which will focus on achieving excellence in operations and customer experience.
A member of Star Alliance, the largest global airline consortium of leading international airlines, Air India offers seamless connectivity to passengers as a full-service global airline, while its wholly owned subsidiary Air India Express operates as a low-cost airline flying within India and nearby countries.
