The Tata Group is making big moves in consolidating its four airlines in 2024. The Times of India reported that Air India Express has begun the ‘second motion’ for a conclusive hearing at the National Company Law Tribunal (NCLT).
Read More: Vedanta faces investor reckoning over $3.2 billion of bonds
This step is aimed at merging AIX Connect (previously known as AirAsia India) into its fold. With expectations set for a March approval, this integration is set to unify the operations of both carriers under a single air operator certificate or license.
The broader merger, which includes merging Vistara into Air India, hinges on Air India attaining a certain operational benchmark, Air India’s Managing Director and CEO Cambell Wilson had told Times Of India earlier. The precise timeline for this merger remains under wraps, but sources close to the matter indicate a likely completion in 2024.
In terms of route strategy, Air India Express is focusing on less saturated markets and tier II & III cities.
Read More: How Gautam Adani raised $15 billion after major net worth loss during Hindenburg saga
Concurrently, Air India will emphasize routes with significant premium traffic, in addition to its medium to ultra-long-haul routes. A key aspect of this strategy is Air India Express enhancing connectivity to Air India’s major hubs in Delhi and Mumbai, thereby supporting the growing network of wide-body international flights.
Aloke Singh, CEO of Air India Express, detailed their expansion plans, saying that with a combined fleet of 62 aircraft (from both low-cost carriers), the aim is to introduce 50 new Boeing 737 Max within the next 12 months. Post-retirement of some older aircraft, Air India Express is poised to operate approximately 98 aircraft by December. This plan aligns with Tata Group’s massive order of 470 aircraft in the previous February, which notably includes 190 B737 Max for its budget carrier, reaffirming its robust commitment to the aviation industry.
Read More: Centre hikes windfall tax on petrol crude oil to ₹2,300; tax on diesel, aviation fuel cut
Tata Sons began the consolidation process in November 2022, merging its airlines Vistara, AirAsia India, and Air India Express under the Air India umbrella. The Competition Commission of India (CCI) gave its nod to the merger of Tata SIA Airlines into Air India in September last year.
