Air India Express Soars with Strategic Merger

Air India Express finalizes its merger with AIX Connect to unify Tata Group's budget airline under Air India, targeting sustainable profitability. Despite a slight fiscal year loss, the merger aims to harness significant scale benefits and cost optimizations. Air India Express plans to expand its fleet and focus on connecting smaller cities.

Air India Express, Tata Group's low-cost airline, has successfully completed its merger with AIX Connect (formerly AirAsia India). The strategic merger aims to solidify its position as a unified budget carrier under the Air India brand, targeting sustainable profitability without financial strain. According to the company, the merger process concluded in October.

Despite challenges, the consolidation is expected to expedite profitability by achieving scale benefits, optimizing costs, and enhancing asset utilization. This move seeks to create a scalable network supporting long-term growth. Air India Express, despite a challenging fiscal year, plans for substantial fleet expansion and market growth.

Focusing on connecting Tier 2 and Tier 3 cities to metro hubs, Air India Express also aims for international market penetration. While maintaining lower fares than inflation amidst cost pressures, the airline sees rational pricing emerging in the consolidated market. The strategy is set for robust growth and investments in the Indian aviation sector.

(With inputs from agencies.)