Domestic, short-haul international: A-I Express unveils vision after merger

AirAsia India operates only domestic flights while 95 per cent of Air India Express's flights are between India and the Gulf region

Air India Express, the low-cost subsidiary of Air India, unveiled its growth vision on Monday following its impending merger with AirAsia India in the coming months.

The growth ambitions will be fuelled by the airline’s “huge fleet” and “network expansion” in both the domestic and short-haul international markets, its Managing Director Aloke Singh stated during a town hall meeting held with employees on Monday evening.

Currently, Tata Group-run AirAsia India and Air India Express operate with 28 and 26 planes in their respective fleet. AirAsia India is in the process of a full merger into Air India Express. The merged entity will become the sole low-cost subsidiary of the full-service airline, Air India.

The transformation plan outlines specific projects aimed at “enhancing the guest experience, optimising the network for market dominance, streamlining operations with a digital-first approach, fostering talent with an innovative and winning culture, and creating value for all stakeholders through sustainable practices, transparent decision-making, and prudent governance”, Air India Express noted in a statement.

While AirAsia India operates exclusively on domestic routes, Air India Express operates 95 per cent of its flights between India and the Gulf region.

Air India primarily operates services between metro-to-metro cities in India and long-haul international routes. Optimising the flight network will ensure that Air India and Air India Express’ services do not cannibalise each other.

Singh emphasised that Air India Express’ resolute vision encapsulates three key differentiators: “making meaningful connections, delivering unique experiences, and providing best-in-class value with the warmth of Indian hospitality”.

The new logo and livery of Air India Express are expected to feature vibrant colours such as orange, red, and turquoise, Business Standard reported last month.

On August 10, Air India revealed its new logo and aircraft livery, which incorporate red, gold, and violet colours. The new design includes the outer pane of a ‘jharokha’, a classic ornate Indian window. It has been reported that Air India Express’ livery and logo will also incorporate the upper edges of this traditional window frame, according to persons familiar with the matter.

In July, the Ministry of Civil Aviation granted approval to AirAsia India to operate under the brand name of Air India Express.

“We have already removed AirAsia from half of the airline’s fleet. The remaining half of AirAsia India’s fleet will have the name removed in the next couple of months,” a person knowledgeable about the development stated.

In February, Air India placed an order for 470 planes, with 250 from European aircraft maker Airbus and 220 from Boeing. This order represents the world’s second-largest single-tranche aircraft purchase. The Boeing order includes 190 B737 MAX, 20 B787s, and 10 B777s. It is expected that 50 of the 190 MAX planes ordered will join Air India Express’ fleet by December next year.