AirAsia India has sought approval from the Directorate General of Civil Aviation (DGCA) to accelerate its integration with Air India Express, leading to a rebranding of the airline as AI Express. Originally slated for completion by March 2024, the merger is now expected to be finalised at least a quarter ahead of schedule.
Smooth Progress towards Integration:
The process of integrating the air operator permit for both airlines is nearing completion, with staff integration already underway and new roles being assigned. The operational arena is also undergoing a rapid transition, particularly with regard to the integration of the flight network. AirAsia India is in the process of rebranding its 27 aircraft to match the livery of Air India Express. The entire fleet is expected to sport the new livery by November–December, with 3–4 aircraft undergoing rebranding every month.
Change in IATA Flight Code:
AirAsia India is also working on changing its International Air Transport Association (IATA) flight code from ‘I5’ to ‘IX.’ This process is expected to be completed by January, taking a few months.
Strategic Rationale and Route Network Restructuring:
The Tata Group, which announced the merger of AirAsia India and Air India Express in November 2022, aims to establish a uniform low-cost brand to compete effectively against India’s largest airline, IndiGo. To avoid competition between the two companies, the Tata Group has initiated a route network restructuring.
Anticipated Benefits:
An early integration is expected to bring several benefits to AirAsia India, including operational efficiencies, cost savings, and revenue growth during the peak demand quarter of October to December. By expediting the merger, the airline seeks to position itself as a strong competitor in India’s highly competitive aviation market.
The accelerated integration of AirAsia India with Air India Express, under the new branding of AI Express, represents a strategic move by the Tata Group to strengthen its position in India’s low-cost aviation segment. The forthcoming completion of the merger is expected to provide operational advantages and financial growth, enabling the airline to compete effectively against established players in the industry.
