After acquiring the remaining shares of Air Asia India from its parent company, the Tata Group has started moves for its merger with Air India Express, the international low-cost carrier of Air India, which came to the Tata fold when it took over Air India
The Tata Group recently announced that it will merge two of its airlines: Air Asia India and AI Express. The move comes after the Tata Group acquired India’s national carrier Air India almost a year ago.
After acquiring the remaining shares of Air Asia India from its parent company, the Tata Group has started moves for its merger with Air India Express, the international low-cost carrier of Air India, which came to the Tata fold when it took over Air India, reported ETTravelWorld.
Earlier this year, the Competition Commission of India had okayed Air India’s bid to take over Air Asia India. Now, the airline has signed an agreement with the Bengaluru-based LCC to commence its merger with AI Express, which is likely to be completed by the end of 2023. The combined entity will be branded as Air India Express.
“We are excited to initiate the creation of a single Air India Group lowcost carrier. This is a key step in the rationalisation and transformation of the Group, and we will be working closely with the management teams and staff throughout the process. We also look forward to the many new opportunities a stronger AI Group low-cost carrier will bring for customers and staff alike.”
— Campbell Wilson, CEO & MD, Air India
An operational review process is underway with a view to ultimately integrating AAI fully with Air India Express (AIXL). Consolidation of these two airlines, both of which operate as low-cost carriers, will be undertaken as part of the restructuring roadmap that is being envisioned for the Tata group’s airline business and is expected to bring customer, revenue, cost and operational benefits through broader adoption of each airlines’ best practices, systems and routes, and the combined entity’s greater scale, Air India said in a statement.
The TATA Group has formed a working group to evaluate and execute the integration of the AI Group’s low-cost operations, which will be co-led by Sunil Bhaskaran, CEO & MD, AirAsia India and Aloke Singh, CEO, Air India Express. The working group will report to a committee chaired by Air India MD & CEO, Campbell Wilson.
Campbell Wilson, CEO & MD, Air India, said, “We are excited to initiate the creation of a single Air India Group lowcost carrier. This is a key step in the rationalisation and transformation of the Group, and we will be working closely with the management teams and staff throughout the process. We also look forward to the many new opportunities a stronger AI Group low-cost carrier will bring for customers and staff alike.”
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