Tatas set to expand Air India Express fleet with Air India, Vistara planes

Air India Express will receive 17 Airbus A320 Neo planes from Air India and 10 from Vistara after their merger, with the transfer expected to be completed by mid-2025

The Tata Group is gearing up to strengthen the fleet of its low-cost airline, Air India Express, by incorporating aircraft from its full-service carriers, Air India and Vistara. This move is part of a broader strategy to enhance its competitive edge against market leader Indigo, according to a report by The Economic Times.

The news report quoted sources saying that Air India Express will receive all-economy configuration aircraft from Air India and Vistara. The first phase of this expansion will involve the transfer of 17 Airbus A320 Neo planes from Air India, followed by 10 similar aircraft from Vistara after its merger with Air India is finalised. The entire transfer process is expected to be completed by mid-2025.

 

The Tata Group’s aviation restructuring plan involves merging its four airlines into two: Air India and Air India Express. This restructuring will allow Air India to focus on the premium segment, while Air India Express targets the no-frills, low-cost market. A source involved in the project stated that the all-economy planes are better suited for Air India Express, which will position itself as the Tata Group’s low-cost carrier.

Fleet expansion to boost capacity

As part of the fleet expansion, Air India Express will not only integrate 17 aircraft from Air India but also 15 Boeing 737 Max planes from its order. This expansion will significantly boost the airline's capacity by mid-2024, the report said. Over the past ten months, Air India Express has already added 26 Boeing 737-8 planes to its growing fleet.

Low-cost carriers in India

Low-cost carriers (LCCs) dominate the Indian aviation market, with 71 per cent of total airline seats falling under this category, according to data from travel analytics provider OAG. Tata Group’s emphasis on enhancing Air India Express aligns with the market's demand for affordable air travel.

Merger with AirAsia India completed

Earlier this month, the Air India Group finalised the operational integration and legal merger of its low-cost carriers, Air India Express Ltd and AIX Connect Pvt Ltd, formerly known as AirAsia India.

Air India Express has significantly expanded its network, now covering destinations across India, the Gulf region, and Southeast Asia. This growth aligns with the airline's broader expansion goals, as the number of routes it operates has surged from 74 to 171. Passenger numbers have also seen a dramatic rise, increasing by over 400 per cent since the Tata Group assumed control of Air India in early 2022, the report said.

In October 2023, the airline introduced a unified brand ‘Air India Express’. As part of this rebranding, flights previously operated by AIX Connect are now marketed under the Air India Express name, following the necessary regulatory approvals.