New interline partnerships to offer cost-effective, one-stop connectivity for Indian travelers.
Tata’s Air India Express is taking significant steps to expand its low-cost international connectivity, forming partnerships with global low-cost carriers (LCCs). This move is in response to growing competition from IndiGo, which is set to operate long-haul budget flights with new aircraft, reported timesofindia.indiatimes.com.
Strategic Tie-Ups for Global Budget Travel
Air India Express has signed virtual interline agreements with six LCCs, including Scoot (Singapore Airlines’ budget arm), Jazeera, VietJet, and Air Arabia. These partnerships will enable Indian travelers to book budget-friendly, one-stop flights to destinations in Australia, the Far East, and Africa.
“At check-in, passengers will receive two boarding passes—one for AI Express and another for the connecting airline,” said Aloke Singh, CEO of AI Express. Currently, passengers must re-check their baggage at transit hubs, but Singh confirmed plans to offer seamless baggage transfers in the future.
IndiGo’s Expanding Long-Haul Ambitions
IndiGo is also gearing up for long-haul budget travel with the arrival of its Airbus A321 XLR (extra-long range) aircraft, capable of nonstop flights to Europe and the Far East. Additionally, from July 2024, IndiGo will deploy Boeing 787s on routes like Manchester and Amsterdam, and within two years, the airline will receive A350 aircraft, enabling it to fly nonstop across continents.
Scaling Up AI Express to Meet Demand
To compete effectively, AI Express has been rapidly expanding its fleet. The airline has added 37 aircraft this fiscal year, bringing its total fleet to 103 planes. In the next fiscal year, AI Express expects to acquire 15 more aircraft.
Singh highlighted the airline’s growth, stating, “We will fly over 2 crore passengers this fiscal, a 19% increase from FY24. Our weekly domestic and international departures this summer will rise by 50% and 20%, respectively.”
As part of its strategy, AI Express will standardize its fleet to an all-economy configuration by April 2025.
Future of AI Express in Long-Haul Travel
While AI Express currently operates flights up to 5.5 hours, such as Chennai-Kuwait, Singh indicated the airline could explore longer routes in the future. However, AI Express does not have immediate plans for twin-aisle aircraft, unlike IndiGo’s upcoming wide-body operations.
A Growing Market for Both Airlines
Despite the competition, officials from both IndiGo and AI Express believe there is enough demand for both airlines to expand without harming each other.
“It’s not about beating each other. We aim to increase India’s share in global air traffic and expand affordable flying for Indian travelers,” said a senior airline official.
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